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Law-Consideration Clause.

You client Titus calls you to tell you he has just agreed to get himself a villa by the sea side somewhere in Bahamas. The thing is there are some outstanding issues, like the house had some structural problems due to a landslide last year. The seller, Caius, says its all repaired now, but you know Titus is all worried half of the mansion will fall right into the sea! Apart from the big structural issue, Titus says he does not care if the house has small defects in the few thousands of dollars. After all, it is a XIX Century villa, and he understands that some things might not be in mint condition. The house has to be in habitable condition, though, and there is no time to have the house certified by an expert. But if defects appear in the house which are significant, he wants to make sure his interests are well kept and he has a way to claim from Caius. The price for the whole villa, and the real estate it sits on is 22.5 Million USD.The first 10 MUSD are payable on signature, and the rest is due in equal yearly instalments, in 5 years, at an interest rate of 12-month LIBOR + 1,66%. You are required to provide: 1. The consideration clause; 2. The warranties you think would leave Titus comfortable; and 3. The remedies that you think are suitable to protect Titus. In order to provide these, remember Titus has a right to withhold part of the price for a few years and that only damages above a certain limit really worry him (hint ‹?)

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