Memorandum
TO:
FROM:
DATE:
SUBJECT: Liability Under the Farnsworth Contract
Tundrell’s liability under the Farnsworth contract is only to Farnsworth, not subsequent buyers such as Sibbo. Furthermore, we are liable to Farnsworth only for the actual loss caused by their relying on our initial commitment; that liability amounts to $226,000 to date. Such reliance involves their legal battles with Belasco County, as explained on the attachment.
I suggest we draft a letter to Sibbo explaining our position and then settle with Farnsworth for the $226,000. If you agree, let me know, and I’ll proceed with the proper paperwork.
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