Pa300: Real Estate Law: Unit 4 Essay

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To: Professor Toni Starcher From: Solomon Richardson Re: PA300: Real Estate Law: Unit 4 (Written Assignment) February 3, 2015 To: Barbara Buyer From: Solomon Richardson, Paralegal Re: Barbara Buyer v. Salesperson/Agent and Trust February 2, 2015 The Ohio courts hold that an “implied duty of good faith and fair dealing” obligation is inclusive in all contracts. This emanates from the Restatement of Law 2d, Contracts (1981), Section 205 which states: "[e]very contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement.” The Sixth Appellate District Court has held that parties to a contract "are bound toward one another by standards of good faith and fair-dealing. The court recognizes that “good faith is part of a contract claim, not necessarily a separate tort claim.” In the case of Brown v. Otto C. Epp Memorial Hospital, 19 Ohio App. 3d 25 (1984), that court stated: “that there is a standard of good faith required of parties to any contract” and “that the standard of good faith is required of every contract….” Thus, in Ohio, “a party can be found to have breached its contract if it fails to act in good faith.” The Restatement Second of Contracts is clear that: "[g]ood faith performance or enforcement of a contract emphasizes faithfulness to an agreed common purpose and consistency with the justified expectations of the other party." Additionally it articulated “that bad faith may consist of inaction, or may be the "abuse of a power to specify terms, [or] interference with or failure to cooperate in the other party's performance.” See; Littlejohn v. Parrish, 2005 Ohio 4850 - Ohio: Court of Appeals, 1st Appellate Dist. 2005. The elements of a contract, offer, consideration and acceptance, are good. It’s the performance that is lacking in the instant case, i.e., the closing and transfer of the

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