Reference no: EM133214773

Please read the facts carefully and answer all questions that follow.

David wished to sell his condominium unit. He called Michelle who was then looking to buy a condominium unit for herself. They met and spoke over coffee. David then agreed to sell to Michelle his flat at the Tandra Condominium, and they shook hands on their deal. Michelle went to a nearby bank ATM, withdrew some cash and gave it to David as a token of her verbal agreement to purchase David's unit. She then started sourcing for a bank to finance her purchase. In the meantime, the market prices of units at the Tandra Condominium shot up unexpectedly. David refused to go through with the sale to Michelle. Michelle sued David.

[NOTE: Please read each of the questions below separately, and DO NOT relate your answers in one part to the other parts - each of the following scenarios are independent of each other.]

a)  Assuming that the agreement was made orally, and that there was no written agreement made between David and Michelle, please explain whether Michelle can prove a case of breach of contract against David.

b)  Assume that there was a valid agreement between David and Michelle, and that David has obviously breached his agreement for sale with Michelle. Applying the law of contract, what would be a sufficient remedy for Michelle?

c) Assume that there was a valid agreement between David and Michelle, and it was Michelle who is unable to go through with the purchase of the unit because she cannot obtain a housing loan. David wants Michelle to complete the contract. Applying the law of contract, what remedy can Michelle ask the Court?