WHAT IF THE FACTS WERE DIFFERENT? Suppose that the contract had stated that the truck and other…

WHAT IF THE FACTS WERE DIFFERENT? Suppose that the contract had stated that the truck and other equipment were worth $50,000 and the goodwill value of the business was worth $100,000. Would that have changed the outcome of this case? Why or why not? Gene and Martha Jannusch ran Festival Foods, which provided concessions at events around Illinois and Indiana. They owned a truck, a trailer, freezers, roasters, chairs, tables, a fountain service, signs, and lighting. Lindsey and Louann Naffziger were interested in buying the concessions business. They met with the Jannusches and orally agreed to a price of $150,000. The Naffzigers paid $10,000 down with the balance to come from a bank loan. They took possession of the equipment and began to use it immediately in Festival Foods operations at various events, even though Gene Jannusch kept the titles to the truck and trailer in his name. Gene Jannusch was paid to attend two events with the Naffzigers to provide advice about running the operation. After six events, and at the end of the outdoor season, the Naffzigers returned the truck and all the equipment to its storage location and wanted out of the deal. They said the business did not generate as much income as they expected. The Jannusches sued the Naffzigers for the balance due on the purchase price. The trial court held that the Uniform Commercial Code (UCC) governed the case but that there was not enough evidence to show that the parties had a sufficient meeting of the minds to form a contract. The Jannusches appealed.

 

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