Contract Law (Case Study 1)

Mr. Burke agreed to sell his semi-detached property in Clifden Co Galway to his neighbour (Martin Keogh) for €340,000 once the sale was complete within 6 weeks. Mr. Keogh thought about the offer he made over the weekend and sent a letter back to say he had reconsidered and was now offering €310,000 and needed 8 weeks to close the sale.

Mr. Burke entered into a contract with a Mr. O’Rourke for €315,000 with a six-week closing date. Mr. Keogh is now suing Mr. Burke for breach of contract.

1. Has Mr. Keogh the right to sue for breach of contract?
2. Discuss the requirements of a valid offer, referring to case law in your answer.
3. How can an offer be terminated give an example of case law in your answer?
4. “A condition is a vital term of a contract, breach of which entitles the injured party to rescind the contract”. Discuss this statement, in terms of the six-week completion period, Mr. Burke inserted in his acceptance.