Reference no: EM132901298

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.

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?

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?

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?