Reference no: EM132900915

John wishes to sell his home and land to Dave. John sends a letter to Dave which reads, "I am considering selling my home, located at 812 Riverdale Rd. Fresno, to you for $400,000. Please respond immediately." Dave writes back, "I promise to buy your home for $400,000." John writes a letter back, which reads, "Good, we have a deal to sell my home."

Based on these facts answer the following questions:

1. Describe completely the requirements for a valid offer, acceptance, and consideration, and then discuss whether the communications between Dave and John contained those elements. (40% of the points.)

2. Assuming a deal goes through and that Dave wants John to guarantee that he owns the property, what type of deed would he want John to sign and why? (20% of the points.)

3. Suppose John is involved in a separate dispute over ownership of the property with a neighbor, Steve (which Dave is aware of). As a result of this dispute John does not want to guarantee ownership, what type of deed would John want to use and why? (20% of the points.)

4. Dave only has $100,000 to put down for the purchase of the property and must get a loan for the rest. What type of deed would the lender want from Dave, and how would this deed protect the lender if Dave defaulted on the loan? (20% of the points.)