Question for brokers, etc.
You know sometimes we old retired poots have too much time to think about
these kinds of things.
Its at times like this I wish I knew exactly where to go for an answer. It
would save me a lot of cogitating.
The first thing that comes to my mind is that there is a real possibility
that the newer document would in fact supersede and cancel the older. We
always consider that the case with wills. The newest properly executed piece
of paper constitutes the will. All the others are just so much scratch
paper.
I'm not sure that the law will allow two parties to enter into two identical
contracts for the same identical thing with the stipulation that one party
can decide which contract is to apply. Are you not giving one party an
advantage? Seems to me if I offered to give you $10000 for a thing-a-ma-bob
and you said OK, then later I said I only want to give you $8000, that my
new offer would in essence cancel my old offer.
Now if I come back and say I'm still offering $10000 but I want this and
that fixed, the original offer is still there but with caveats which were
most likely addressed in the first offer. In this case subject to
inspection, sea trial, etc.
My reasoning just tells me that the law will be that when I make a newer
offer, that changes the terms of the first, in this case the price, that the
new offer is considered my current offer and therefore cancels the older
one. Of course once the old one is cancelled, neither party is obligated to
it.
Otherwise I as a buyer would just keep making lower and lower offers,
knowing that I have nothing to lose if the seller can not withdraw.
Kind of negotiating with a safety net.
Seems right to me.
Bill
Basic contract law. You have a contract that the buyer may elect not to
complete in the event of certain contingencies (unfavorable sea trial). By
telling the buyer a contingency has ocurred, you have gotten out of your
obligation to complete the contract.
The making of a separate offer is a counter offer that the seller is free to
accept or reject. All prior agreements are off the table.
Musing Trial Lawyer
-------Original Message-------
From: cooke_w@bellsouth.net
Date: 10/12/04 21:27:25
To: TrawlerWorld
Subject: T&T: Question for brokers, etc.
You know sometimes we old retired poots have too much time to think about
these kinds of things.
Its at times like this I wish I knew exactly where to go for an answer. It
would save me a lot of cogitating.
The first thing that comes to my mind is that there is a real possibility
that the newer document would in fact supersede and cancel the older. We
always consider that the case with wills. The newest properly executed piece
of paper constitutes the will. All the others are just so much scratch
paper.
I'm not sure that the law will allow two parties to enter into two identical
contracts for the same identical thing with the stipulation that one party
can decide which contract is to apply. Are you not giving one party an
advantage? Seems to me if I offered to give you $10000 for a thing-a-ma-bob
and you said OK, then later I said I only want to give you $8000, that my
new offer would in essence cancel my old offer.
Now if I come back and say I'm still offering $10000 but I want this and
that fixed, the original offer is still there but with caveats which were
most likely addressed in the first offer. In this case subject to
inspection, sea trial, etc.
My reasoning just tells me that the law will be that when I make a newer
offer, that changes the terms of the first, in this case the price, that the
new offer is considered my current offer and therefore cancels the older
one. Of course once the old one is cancelled, neither party is obligated to
it.
Otherwise I as a buyer would just keep making lower and lower offers,
knowing that I have nothing to lose if the seller can not withdraw.
Kind of negotiating with a safety net.
Seems right to me.
Bill
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for nearly all brokered boats, the contract is subject to sea trial and
survey and in a majority of cases, the survey will turn up some issues and
it's common practice to request that the seller either addresses the issues
or adjust the price to cover the reapirs.
When I bought my 53, the autopilot and stabilizers didn't work during the
sea trial, among other things. I made a detailed list of the most important
issues with estimated repair costs and gave the seller the option of either
addressing them or adjusting the price. The list and costs were reasonable
and teh selller accepted the 5% adjustmeent.
this is standard procedures when buying a boat that's why you're not
presenting a new contract which would cancel the previous one but only
presenting a request for adjustment.
the reason a buyer can't just make lower and lower offers is that by that
time he already has spent between $ 1000 and $ 2000 on hull and engine
surveys and don't want to loose teh deal altogether. when you think about
it, it balances teh negotations and gives the seller a slight edge. on the
buyer's side, the seller has spent time and costs on the sea trial and may
not want to keep the boat much longer anyway...
the problem in this case, is that teh broker maybe giving the seller the
same wrong information if he thinks the price is already below market...
pascal
miami, fl
1970 hatteras 53MY