Third Party Contracts
Jordan entered into a written agreement to sell his boat to
Zoe for $567,000 with delivery to take place on May 15, 2011. Zoe was to pay
$100,000 at that time and the balance on or before August 1, 2011. Jordan
delivered the boat and Zoe paid the first $100,000 installment.
On July 25, she approached Jordan and said she was having
financial troubles. She did not have the funds to pay. She told him that she
would instead offer to pay the balance by transferring three valuable pieces of
jewelry that she owned. Jordan had the pieces examined by a professional
jewelry appraiser who placed the value at
"approximately $500,000." Jordan agreed in writing to "accept
the three pieces as payment in full, so long has it is completed by August 15."
On August 8 during a Lake Superior storm, the boat sank and
could not be recovered. Zoe never delivered the jewelry and on Nov.1, Jordan
sued to recover the $467,000 balance due on his boat. During the previous few
months, the value of gold and precious gems had fallen so low that the
jewelry was now only worth $200,000. Zoe offered to give him
the jewelry but Jordan insists on payment of cash.
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