ALA quizzes
On October 1, a seller mailed a letter to a buyer offering to sell a specified quantity of shirts at list price. The buyer received the seller's offer on October 2. The next day, the buyer mailed the seller a letter of rejection. The buyer then changed his mind and decided to accept the seller's offer. On October 4, the seller sent the buyer a letter revoking his original October 1 offer. On October 5, the buyer emailed the seller indicating that he wished to accept the seller's offer. The seller read the email on October 6. On October 7, the buyer received the seller's letter of revocation. The following day, the seller received the buyer's rejection. The seller subsequently refused to sell the shirts to the buyer, and the buyer sued for breach of contract. Assume that the buyer's email complies with the Statute of Frauds. Which of the following is most accurate?
(A) Judgment for the buyer, because he accepted in a reasonable manner and before receiving notice of the seller's revocation.
A father hired a golf pro to give lessons to his 14-year-old son. The father agreed to pay the golf pro $1,000 for 10 one-hour lessons for his son, which were to be held on Saturday mornings. When the father and son arrived for the first lesson, they were accompanied by the father's daughter. As the golf pro started his instructional lesson with the son, the daughter asked if she could participate. The golf pro did not object and allowed the daughter to receive instructions along with her brother. As it turned out, the sister accompanied her brother and took all 10 lessons as well. Each Saturday, the father was present and watched the golf pro give the same lesson to both children. After the brother and sister received their last lesson, the golf pro requested payment. When the father presented a check for $1,000, the golf pro told the father that he owed an additional $1,000 for the lessons that the daughter received. After the father refused to pay for the daughter's lessons, the golf pro brought a contract action against the father for $1,000. What will the father most likely be held liable for? (A) Nothing, because the golf pro allowed the sister to gratuitously participate in the lessons. (B) Nothing, because no formal contract was entered into between the golf pro and the father. Correct Answer (C) $1,000, because an implied-in-fact contract was formed. You Answered
(C) $1,000, because an implied-in-fact contract was formed.
An employee successfully negotiated a lucrative contract for her employer. As a result, her employer orally promised her a $10,000 bonus payable at the end of the year because of the employee's "good work." At the end of the year, the employer informed the employee that the company's profits were not as large as he expected, so the promised bonus would not be paid. Which of the following is the legal effect of the employer's promise to pay the bonus to the employee? A) It is enforceable, because the employee conferred a material benefit on the employer by negotiating the lucrative contract. (B) It is enforceable, because the employer was morally obligated to pay the bonus. Correct! (C) It is unenforceable, because it was not supported by legally sufficient consideration. (D) It is unenforceable, because it was not in writing.
(C) It is unenforceable, because it was not supported by legally sufficient consideration
A financial analyst hired a cowboy to perform at his son's birthday party. Soon thereafter, the cowboy got pneumonia and informed the analyst that he would be unable to perform. The analyst immediately sent an overnight letter to a balloon-animal maker recommended by a friend: "I had lined up the cowboy to perform at my son's birthday party, but he can't perform. I need another performer. You have to be here on the actual birthday. Money is no problem. Sincerely, Financial Analyst." The balloon-animal maker promptly sent back a letter by overnight mail: "I'm coming to your rescue! Yours truly, Balloon Maker." After the balloon maker dispatched the letter, but before the analyst received it, the cowboy called the analyst to let him know that his treatment for pneumonia was working better than anticipated, so he could in fact perform as planned. The analyst then called the balloon-animal maker and told her that he no longer needed her. The balloon-animal maker sued the analyst for breach of contract. The analyst asserted the defense that the cowboy's recovery was a changed circumstance that excused the analyst from liability on his contract with the balloon maker. Will the analyst prevail?
(C) No, because the analyst assumed the risk of the cowboy's recovery, as his offer was not conditioned on the cowboy's incapacity.
A homeowner said to a carpenter, "My porch is in need of repair. I think the boards are cracked. Can you do the job for $5,000?" The carpenter replied, "I'd be happy to, but $5,000 seems a little low. Make it $6,000 and you got a deal." The homeowner then remarked, "Deal." Three days later, the carpenter purchased the necessary materials, then drove his pickup truck to the homeowner's home and unloaded the materials and equipment needed to perform the job. When the homeowner looked out his window and saw what was transpiring, he immediately ran outside and exclaimed, "Stop! The deal's off. I decided to repair the porch myself." In an action by the carpenter against the homeowner for breach of contract, which of the following is the most accurate?
A bilateral contract was formed before the carpenter purchased the materials.
A buyer ordered 1,000 widgets from a seller for immediate delivery. The seller responded by shipping 800 widgets rather than the full 1,000 ordered, because the seller did not have an adequate inventory and thought it better to ship something rather than nothing. Which of the following is the most accurate statement?
A contract was formed when the seller shipped the widgets.
A plumber hired a carpenter to build him an intricately carved armoire out of solid teak for $10,000. When the carpenter presented the armoire to the plumber, the plumber inspected it and noticed that there was a bubble in the finish on the side of the armoire. In good faith, the plumber believed that the armoire was not finished properly and refused to pay the carpenter anything. On September 5, the carpenter sent the plumber an invoice for the armoire, with a note enclosed that said, "My aunt is disabled, and I need the money so I can make her house accessible. Please send the $10,000 before September 30." Although the plumber felt sorry for the carpenter, she was displeased with the flaw in the armoire's finish. On September 10, the plumber wrote to the carpenter, "I would like to settle this as soon as possible. I will pay you $9,000 if you will repair the flaw on the armoire." The carpenter did not respond. The plumber's refusal to pay the carpenter any money upon delivery of the armoire constituted what?
A) A total breach, if the carpenter had properly or substantially completed the armoire.
Two neighbors hired the same contractor to repair their roofs. The first neighbor also contracted to have a new deck constructed. Both neighbors unexpectedly left town, and the contractor mixed up the projects, installing a deck on the second neighbor's house, not the first neighbor's. When the contractor discovered the mistake, the second neighbor refused to pay. She claimed that because it was the contractor's mistake, he should absorb the cost. The contractor filed suit against the second neighbor for payment. If the contractor prevails in his suit, his success will likely be based on which of the following principles of contract law?
A) Unjust enrichment
On December 1, Arnold, who had purchased two tickets for a holiday magic show, sent the following email to his three friends, Baker, Charlie, and Dora: "Dear Baker, Charlie, and Dora: I have two tickets for the upcoming holiday magic show. If any of you are interested in buying my tickets, I will let you have them for a reasonable price, but I must have your reply by December 20. s/Arnold" The tickets, which cost Arnold $10, were now selling for between $50 and $70. On December 19, Arnold received an email from Baker that stated, "I accept your offer and will pay you $50 for the two tickets." Arnold did not immediately respond to Baker's email. On December 22, Arnold received the following text message from Charlie: "I am dying to go to the concert...will pay $70 for your seats." The next day, Arnold sent a reply text to Charlie which read: "The tickets are yours. You may take delivery upon payment of the $70." Dora did not respond to Arnold's letter. Baker tendered the $50 to Arnold within a reasonable time, but Arnold refused to sell the tickets to him. In an action by Baker against Arnold for breach of contract, judgment should be for whom?
Arnold, because his email was not an offer, but rather, an invitation to bargain, and he was free to accept either Baker or Charlie's offer.
A carpet cleaner sent the following terms in a writing to a homeowner. "I will clean your carpets up to 1,000 square feet for a price of $100 per room. This offer is non-cancellable for 60 days from today." The carpet cleaner dated the letter and signed it at the bottom. The homeowner received the letter and immediately wrote a letter accepting the carpet cleaner's terms, but did not immediately send the letter. A week after sending his letter to the homeowner, the carpet cleaner received an offer from a hotel owner requesting his services for the next month at several of his hotels. The carpet cleaner wanted to accept the hotel owner's offer, but was concerned about the outstanding letter to the homeowner. Which of the following is most accurate?
B) The carpet cleaner can revoke his offer to the homeowner, because there was no consideration provided that would make the offer irrevocable.
An emergency room doctor was camping with his family in a local state park. As the doctor was walking to get water, he heard a woman screaming that her husband was choking. The doctor rushed to help, but was unable to dislodge whatever was causing the man to choke, and the man died. The doctor now seeks your advice as to whether he can charge the man's estate for his services. This jurisdiction does not have a Good Samaritan statute, and the hospital that the doctor works at treats all doctors as independent contractors. What advice would be most accurate?
B) The doctor can recover, based on quasi-contract
On Monday, a man told a gardener, "I am having a party on Sunday and I want my house to look good. If you will agree to mow my lawn by Saturday, I will pay you $50. Think about it and let me know." The man did not hear from the gardener all week. Therefore, the man decided to mow the grass himself. On Saturday, the gardener arrived with his lawn mower, and saw that the grass had been freshly mowed. The man informed the gardener that he had just finished cutting the grass himself. The gardener then brought suit against the man for breach of contract, because he argued that he was within the window of time to accept and that he had given up another job in reliance on mowing the man's grass. Who is likely to prevail?
B) The man, because the offer to the gardener was indirectly revoked.
The owner of a discount luggage store always looks forward to graduation day because the parents of graduating seniors often buy luggage as presents for children who are going away to college. One June, the owner decides to run an advertisement in the local newspaper. The ad copy read, "Valedictorian Sale--June 15! To each high school valedictorian graduating from either of the town's two high schools this year, the luggage store offers two deluxe suitcases for the price of one. Purchase one and receive a second free! Limit two suitcases per valedictorian." The owner believes that because there are two high schools in town, there will be only two valedictorians to qualify to accept his offer. However, he is unaware that students at the two high schools may take a number of Advanced Placement courses and that any student receiving an A in these classes may obtain a cumulative GPA greater than 4.0. In addition, the high school administrators have made it a policy that any senior with a GPA above 4.0 will be deemed a valedictorian. As a result, one of the high school's graduating classes has nine valedictorians, and the other high school has ten valedictorians. On June 15, when the third valedictorian attempted to accept the owner's offer, tendering him the purchase price for one suitcase, the owner refused to honor the advertisement. If the third valedictorian sues for breach of contract, will she prevail? Yes, because she relied upon the owner's offer. Correct! (B) Yes, because she accepted the offer when she tendered the purchase price of one suitcase. (C) No, because the owner was mistaken about a fact underlying the contract. (D) No, because the valedictorian's tender of payment was an offer, which the owner could properly reject.
B) Yes, because she accepted the offer when she tendered the purchase price of one suitcase.
After graduating from a state university, a woman could not decide whether to continue on in graduate school or to accept an offer from a company in another city. The woman's aunt said she would pay all of the woman's tuition and expenses for the year-and-a-half that the woman would need to complete her master's degree. The aunt also said she would pay the woman an additional $500 for every A that the woman earned and $250 for every B she earned. The woman told her aunt that she would enroll in a master's program. The following week, the woman's father learned of the offer his sister had made. He told the woman that if the aunt did not pay the woman as she had indicated she would, he would pay the woman. The woman enrolled in a master's program at the state university, and she earned eight A's and two B's for her coursework. The aunt died shortly after the woman's graduation. The executor of the aunt's estate refused to pay the woman the $4,500 bonus for her good grades. The woman then went to her father and asked him for the $4,500 bonus, but he refused to pay. The woman then sued her father. What is the most likely reason why the woman would not succeed in trying to enforce his promise?
C) It was an oral contract.
A six-year-old girl was kidnapped outside her home in a small town. Following the girl's abduction, her parents publicly announced a $50,000 reward to anyone responsible for the apprehension of the kidnapper. The girl's abductor was described as a Caucasian male between the ages of 25 and 30 with curly blond hair. He also was identified as having a pentagram tattoo on his left arm. One afternoon, an off-duty police officer from a nearby town stopped at a local fast-food restaurant for lunch. The officer was aware of the kidnapping, but was unaware of the reward. Once he entered the restaurant, the police officer noticed a man fitting the description of the kidnapper. The police officer proceeded to arrest the individual, who, in fact, turned out to be the girl's abductor. After the girl was found unharmed, the police officer learned of and requested the $50,000 reward. However, the girl's parents refused to pay the police officer the reward money. If the police officer brings suit against the girl's parents to recover the $50,000 reward, for whom should the court enter judgment?
C) The girl's parents, because the officer was unaware of the reward when he apprehended the kidnapper.
On Monday, a widget wholesaler faxed to a buyer a letter promising to sell him 500 widgets for $2,000. On Tuesday, the buyer telephoned the wholesaler and said he was rejecting the offer because the price was too high. During the telephone conversation, the wholesaler responded, "Why don't you wait and think it over until tomorrow?" The following day, the buyer learned that there was a nationwide widget shortage. He immediately telephoned the wholesaler and said, "I've changed my mind and will accept your offer." The wholesaler then told the buyer, "Sorry, pal, you had your chance and blew it." After the wholesaler refused to sell the widgets to him, the buyer sued for breach of contract. A) No, because the buyer's telephone call on Tuesday constituted a rejection. You Answered (B) No, because there was no consideration to keep the offer open until Wednesday. Correct Answer (C) Yes, because the wholesaler's statement "Why don't you think it over until tomorrow" revived the offer, which the buyer subsequently accepted in a timely fashion. (D) Yes, because both parties are merchants.
C) Yes, because the wholesaler's statement "Why don't you think it over until tomorrow" revived the offer, which the buyer subsequently accepted in a timely fashion.
A chef negotiated with a contractor to remodel his home kitchen to look like the kitchen in his restaurant. In order to do this, the contractor had to order top-of-the-line appliances. He also needed to remove some sections of a wall and install new electrical sockets to accommodate the appliances. The cost of the remodel was $50,000, with two-thirds of the price coming from the purchase of the appliances. A dispute arose and the parties both suspended their obligations. The contractor refused to further perform and the chef refused to pay the contractor. What law should be used to analyze the dispute?
Common law should be applied to the entire transaction, because the primary purpose was to provide a service, regardless of the cost of the appliances.
A college student was involved in a car crash while driving her father's car. Her negligent driving caused her to collide with a vehicle operated by a teacher. Both the teacher and the college student were seriously injured in the crash. The college student's father believed that since the college student had been driving his car, he himself was liable for the accident. The father went to visit the teacher in the hospital, where he was being treated for injuries suffered in the accident. The father told the teacher that he would personally reimburse the teacher for any losses he suffered as a result of the accident. The father also told the teacher's doctor to take good care of the teacher, and that the father would pay the teacher's bill. A week later, the college student died as a result of her injuries. She left no assets. If the teacher files suit against the father to recover the amount of his lost wages as a result of the accident, which of the following offers the father his best defense? A) The Statute of Frauds. (B) The indefinite nature of his promise to the teacher. (C) The father was mistaken as to whether he was responsible for the accident. Correct Answer (D) Lack of consideration.
D) Lack of consideration
More than anything else, an elderly widow wanted a cabin in the woods of Vermont. She bought a lot on the side of a hill and hired a local carpenter to build her cabin. Construction began late in the year. By December, the carpenter had finished about 75% of the work on the cabin when an avalanche completely wiped out the cabin. The carpenter refused to build a new cabin for the widow, and the widow refused to pay the carpenter anything for the work he had performed. The carpenter filed a breach of contract action against the widow. What amount is the carpenter entitled to recover from the widow for his work on the cabin?
D) Nothing, because the carpenter bore the risk of damage or destruction.
On Monday, Jim decided to sell his vintage car. Bill had always admired the car and inquired as soon as he saw the for-sale sign. Jim said he was firm at $5,000. Bill thought this was a good price, and told Jim he wanted it, but needed to check with his wife before spending such a large amount of money. In the meantime, Bill pulled a $100 bill from his pocket and gave it to Jim, saying, "Here's a down payment. See you tomorrow!" Jim replied, "Okay, it will be here." On Tuesday morning, Bill approached Jim with a check written out for $4,900. Jim said, "Sorry, but you're too late. I accepted an offer last night for $10,000." In an action by Bill against Jim for breach of contract, how should the court rule?
For Bill, because Jim created an option contract, which is irrevocable at least until the following day.
Shortly after his 16th birthday, a 16-year-old was drafted by a leading professional baseball team. He celebrated his signing by taking out an eight-year lease on an extremely high-end luxury car. Two years later, while celebrating his 18th birthday, the baseball player crashed the expensive leased car. At that point, will he be allowed to disaffirm his lease?
He will be able to disaffirm the lease, because he has just recently turned 18 years of age.
A man makes the following statement to a woman: "I hereby offer to sell you Blackacre for $10,000. This offer expires in 30 days." Which of the following is most accurate regarding the man's offer? (A) It is a firm offer that is irrevocable before the 30-day period has passed. Correct! (B) It is neither a firm offer nor an option contract, and is revocable at any time before acceptance has been made. (C) Because the man is not a merchant, the woman has a reasonable time to accept. (D) Regardless of the man's status, the woman must accept within 30 days and before receiving notice of the man's direct revocation.
It is neither a firm offer nor an option contract, and is revocable at any time before acceptance has been made.
A buyer ordered 1,000 widgets from a seller for immediate delivery. The seller responded by shipping 800 widgets, along with an accompanying notice to the buyer explaining that the seller did not have an adequate inventory to ship 1,000 widgets, and was therefore shipping 800 widgets as an accommodation to the buyer in light of the buyer's urgent need. Which of the following is the most accurate statement? (A) A contract was formed under the mailbox rule when the seller shipped the widgets. (B) A contract will be formed once the widgets arrive at the buyer's address. Correct! (C) No contract exists, because the notice of accommodation operates as a counteroffer. (D) No contract exists, because the buyer's accommodation is not an acceptance.
No contract exists, because the notice of accommodation operates as a counteroffer.
A whitewater rafting tour company and a state college faculty association arranged to rent all of the tour company's rafts for a faculty ride down the Rocopico River the first weekend of spring break. The contract price was set at $2,500, including a $1,000 nonrefundable deposit. The deposit was designated as "liquidated damages." The association paid the $1,000 and agreed to meet the tour company's owner and rafters at Avon on the Rocopico on March 18 at 7:30 a.m. The owner and his rafters showed up at Avon with their rafts in tow at 6:30 a.m. on the morning of March 18. By 10 a.m., however, no one from the faculty had shown up. At 10:30 a.m., a group of students from the local elementary school showed up in Avon and became interested in a short ride when they saw the rafts were available. The tour company owner concluded that the association was not going to show up, so he arranged with the head teacher of the elementary school to take the students on a day trip for $2,000. The owner spent the rest of the day with the students on the river. The association requested a return of the deposit, but the tour company refused to return the deposit. The association has pursued a legal action to recover a refund of the $1,000 deposit. Will the court enforce the liquidated damages clause?
No, because $1,000 is an unenforceable penalty and damages are sufficient compensation for the breach.
A computer store places an advertising circular into the local newspaper and advertises that it will sell tablet computers (normally $490.00) for "$.390.00" to the "first fifty customers to come to the store on Wednesday." The first customer to arrive at the store tenders his check for $.39 to the store, which refuses to sell him the tablet computer. The store tells the customer that the price in the circular was a misprint. May the customer enforce a contract to sell the tablet computer for the advertised price?
No, because no reasonable person would believe that the offer to sell the tablet computer for "$.390.00" was anything other than a misprint.
A tenor entered into a contract with the city opera. The contract was signed by himself and by the city opera's manager. The tenor was to be employed by the city opera for three seasons, each running from September 1 through March 30, at a salary of $35,000 per season. On September 1, the tenor failed to appear for work at the city opera. On September 4, the manager heard on the news that the tenor had been seriously injured in a water-skiing accident the previous week and would require two to three months of recovery. The manager then hired a local tenor to sing for city opera for a period of three months at a salary of $6,000 per month. Is the city opera entitled to recover from the tenor the additional $1,000 per month that it has to pay the local tenor beyond what it had contracted to pay the tenor?
No, because performance of a personal services contract is excused if a party is injured and cannot perform.
Knowing that his niece was looking for a good used car, an uncle sent an email to his niece one Friday afternoon, promising to sell her his car for $1,000 if she accepted before the end of that weekend. After reading the email, the niece sent her uncle a reply email that stated, "The price is a little high. I'll give you $800." The uncle responded via email, "I will not accept $800; it is worth more than that." The next day, the niece emailed her uncle and said, "I changed my mind, I will pay $1,000." On Sunday, the uncle responded that he refused to sell the niece his car. If the niece brings a cause of action against her uncle to enforce the agreement, will she prevail? (A) Yes, because she accepted the uncle's terms. (B) Yes, because she accepted the uncle's terms before the end of the weekend Correct Answer (C) No, because she made a counteroffer. You Answered (D) No, because the uncle rejected her counteroffer.
No, because she made a counteroffer
A museum enters into a contract with an art institute to manage a nationwide tour of numerous priceless paintings owned by the art institute. The contract calls for the art institute to lend the works of art to the museum and for the parties to cooperate in the display of the art in various museums over a two-year period. Just before the tour is to begin, the art institute refuses to abide by the contract. Is a court likely to order the art institute to specifically perform the contract?
No, because such a remedy would require the parties to cooperate over a long period of time.
A woman advertised a van for sale for $3,500. Several potential buyers looked at the van and test-drove it. Finally, a buyer said, "I'll give you $2,000 for this van. I think that transmission is on its last legs, so I'm not paying any more than that." The woman said, "Well, that's certainly less than it's worth, but I've got to get it sold. You can have it for $2,000. I'll find the title, and you can pick up the van and the title this afternoon. Bring cash." However, when the buyer returned with the money, the woman said, "I've changed my mind. I just can't sell it that cheap." The fair market value of the van was $2,700. If the buyer sues in small claims court for $700 in damages, will he prevail?
No, because the contract was not in writing.
A famous football player had his dog stolen from his yard. He immediately went to social media and implored anyone with details to contact him. He put a description of the dog, where it was last seen, and said that he would be forever indebted to whomever found his dog. One particular fan immediately went out looking for the dog in the area surrounding the player's home. A few days passed and the player became desperate, so he offered a $5,000 reward for finding the dog. After several days of looking, the fan finally saw the dog tied to a bench. He untied the dog and went onto the player's website to contact him. The fan then saw the reward offer and returned the dog, demanding the reward. The player refused to pay the fan the $5,000. Is the player liable to pay the fan the reward money?
No, because the fan did not know of the reward before he found the dog.
On Monday, a chicken farmer emailed a restaurant owner promising to sell him 500 chickens for $2,000. On Tuesday, the owner replied to the farmer that he was rejecting the offer because the price was too high. The farmer quickly replied, "Why don't you wait and think it over?" The following morning, the owner learned that due to a salmonella outbreak, there was a nationwide chicken shortage. He immediately telephoned the farmer to accept. The farmer knew it was the owner, and so he answered the phone by saying, "Good morning, I hereby revoke my offer." The owner replied, "You told me yesterday to think it over, and I have, I accept." The farmer then replied, "You had your chance and you blew it." After the farmer refused to sell the chickens to him, the owner sued for breach of contract. Is there an enforceable contract between the parties?
No, because the farmer revoked the offer before the owner accepted it.
A photographer for a wedding magazine planned a photo shoot in which brides and grooms would model the latest wedding fashions around an elegant mansion that needed to be booked months in advance. All similar venues in the area charged $1,000 for a four-hour rental, but the booking office contracted with the photographer to use the space for $200 because of the good publicity that would result. When the photographer got to the mansion, she discovered that it had not been cleaned from a wedding there the night before. The booking office said that it would take two hours to clean up the mess. That would leave hardly any daylight time to take photos, so the photographer was forced to make a last-minute booking across town for $1,200. If the court finds that the booking office breached the contract with the photographer, will the booking office be liable for reliance damages?
No, because the parties had a valid contract.
An owner of a men's haberdashery, in anticipation of a cold winter, wanted to have a large quantity of scarves in stock for his customers. The owner telephoned a scarf wholesaler and ordered 600 scarves for October 1 delivery. The wholesaler promised to deliver 600 scarves at the agreed price of $10 per scarf. Thereafter, the wholesaler did an inventory and learned that he only had 550 scarves in stock. Without notifying the owner, the wholesaler went ahead and delivered the 550 scarves to the owner on October 1. When the owner learned that the shipment contained 550 scarves instead of 600, he refused to accept delivery and did not make any payment. The owner brought suit against the wholesaler for breach of contract. To what damages, if any, is the owner entitled? (A) None, because the agreement was unenforceable under the Statute of Frauds. (B) The contract price minus the cost of replacement. (C) $6,000. You Answered (D) $5,500.
None, because the agreement was unenforceable under the Statute of Frauds.
A shopping center engaged an asphalt company to redo its parking lot. The asphalt company promptly completed the project. However, the shopping center subsequently discovered that the work had not been performed exactly according to the terms of the contract, although the mistake was cosmetic and the parking lot was perfectly usable. Nevertheless, the shopping center sued the asphalt company, claiming that the parking lot needed to be completely torn out and redone. The asphalt company defended on the ground that it had substantially performed its contractual duties. How should the judge rule?
The asphalt company will be required to pay only the diminishment in value of the parking lot as constructed, because it substantially performed.
A seller sent an email to a potential buyer offering to sell his patio furniture to her for $5,000. The buyer immediately responded via email asking whether the offer included the umbrella that was sitting in the garage. The seller emailed back: "No, it does not; just what is sitting on the patio. If you want an umbrella, you will have to buy one." The buyer then ordered an umbrella that would fit on the table and matched the color of the chairs. Later that day, the buyer replied to the seller: "I accept your offer." The seller then wrote back, "I have changed my mind, I've decided to keep the furniture." If the buyer sues the seller claiming there was a valid contract, who is likely to prevail?
The buyer, because she accepted the seller's offer within a reasonable amount of time and before the seller revoked his offer.
On March 1, a seller mailed a letter to a buyer offering to sell a specified quantity of shirts at list price. The buyer received the seller's offer on March 2. The next day the buyer mailed the seller a letter of rejection. The buyer then changed his mind and decided to accept the seller's offer. On March 5, the buyer mailed a letter of acceptance to the seller. On March 4, the seller sent the buyer a letter revoking his original March 1 offer. On March 6, the seller received the buyer's acceptance. On March 7, the buyer received the seller's letter of revocation. The following day, the seller received the buyer's rejection. The seller is now refusing to sell the shirts to the buyer, and the buyer has sued for breach of contract. Judgment should be for whom? A) The buyer, because he mailed his acceptance before receiving notice of the seller's revocation. Correct Answer (B) The buyer, because the seller received his acceptance before receiving notice of the buyer's rejection. (C) The seller, because the buyer mailed his rejection before depositing his acceptance. You Answered (D) The seller, because he mailed his revocation before receiving notice of the buyer's acceptance.
The buyer, because the seller received his acceptance before receiving notice of the buyer's rejection.
An experienced antique collector orally agreed to pay a dealer $250,000 for a rare Stradivarius violin. During their negotiations, both parties referred to the violin as "an original Stradivarius." The collector paid the dealer $250,000 and received the violin. At the time of the purchase, the dealer also handed the collector a bill of sale disclaiming, under applicable provisions of the Uniform Commercial Code, all express or implied warranties. A short time later, the collector discovered that the violin he purchased was not an original Stradivarius, but in fact, a masterful imitation. The violin was valued at only $500. The collector subsequently brought an appropriate action against the dealer to rescind the contract and recover the $250,000. The court will likely find in favor of which party?
The collector, because although the sales contract was valid, it would be voidable by the collector due to the mutual mistake of the parties regarding the genuineness of the violin.
A concert promoter rents a large concert hall for a performance by a famous European symphony orchestra, which many people in his city have wanted to see. When he signs the contract, it is two months ahead of the concert. For several months, a particularly virulent influenza has been prevalent in several regions of the world, including one that the orchestra will be traveling through just before it comes to the promoter's city. On the day of the performance, the orchestra has to cancel because half of the musicians are ill with the flu. Which of the following is correct?
The contract between the promoter and the hall is not discharged, because the promoter bore the risk.
A businessman decided to purchase five televisions from a television manufacturer to sell them at the businessman's store. The businessman called the manufacturer and agreed over the phone to purchase five televisions, each for $200. The manufacturer then sent the businessman an e-mail on company letterhead detailing the transaction. However, when time came to perform, the manufacturer refused to deliver the televisions. The businessman sued for breach of contract. Which of the following is correct?
The contract is enforceable, because the manufacturer sent a letter describing the offer to the businessman.
A businessman decides to buy a large tract of land because he wants to build a mill on the land. He contacts the owner of the large piece of land and the two parties orally agree that the businessman will buy the land in seven months. However, after about a month, the owner calls the businessman and tells him that the deal is off. Nevertheless, the businessman seeks to enforce the contract. Which of the following is correct?
The contract is not enforceable, because the contract is for the sale of land.
A man decides that he wants to move to another city in about a year. He has a rare bicycle, but he has been interested in buying a new one, so he decides that when he moves, the man will sell his bicycle. The man talks to his neighbor and learns that the neighbor is a big fan of his bicycle. The two parties orally agree that the man will sell the bicycle to the neighbor for $350 in a year and a half when the man expects to be out of the city. When time comes for the man to sell his bicycle, he refuses. The neighbor sues for breach of contract. Which of the following is correct?
The contract is not enforceable, because the contract was for longer than a year.
A woman wants to buy furniture for her home. One day, she sees a new furniture set being produced by a famous furniture manufacturer. She immediately orders the furniture set by calling the manufacturer and orally agreeing to purchase the set for $3,000. The woman then sends a signed letter describing the transaction to the manufacturer. However, two days later, the manufacturer decides not to deliver the furniture set. Which of the following is correct regarding the manufacturer's obligation?
The contract is not enforceable, because the manufacturer never signed the letter.
A young man had been helping his father run the father's farm for several years. The son wished to move out of town, but his father's health had been declining to the extent that he was unable to take care of himself anymore. The farm was located south of town, in an area into which the town might be expanding in the next few years. The son was aware of the possible expansion, but his father was not. The son spoke to his father and told him of his plan to move out of town. Worried about his father's failing health, the son urged his father to sell the farm to a neighbor for $150,000. Unbeknownst to the father, his son and the neighbor were actually planning to hold onto the land until the town expanded south, at which time they planned to subdivide it and make a large profit in the real estate market. The father agreed to sell the farm to the neighbor and signed the papers for a transfer, even though the sales price was below the actual market value. The father later discovered that he could have sold the farm for at least $300,000. He now seeks to void the contract. Which of the following is the father's strongest argument?
The contract is voidable by reason of undue influence.
A man decides to sell his car that he has owned for three years. The man places an advertisement in a local newspaper and soon receives a call from a potential buyer. During the call the buyer offers $6,000 for the car and the man agrees. The buyer gives his address to the man so the man can drive the car to the buyer. The man calls his friend and tells him about the details of the transaction. However, after thinking about the sale for a couple of hours, the man decides not to sell the car and sends a signed letter to the buyer stating that he will not be accepting the $6,000 payment for the car. The buyer seeks to enforce the contract. Which of the following is correct regarding this transaction?
The contract satisfies the Statute of Frauds, because the man sent the buyer a signed repudiation.
The owner of a lakefront house had leased the house to a renter for the past three summers. Last year, on October 1, the owner sent the renter a letter stating, "Because you have been such a great tenant, I will rent you the house on the same terms as last year. However, I need your answer by February 1." The renter, uncertain as to when he would be taking his annual vacation, decided to put the letter aside for the time being, intending to respond to it by February 1. On January 15, the owner received an offer from the renter's cousin to rent the house at a higher price than the renter had paid the prior year. The owner accepted. On January 20, after learning about his cousin's rental, the renter telephoned the owner and said, "I have decided that I want the house for the summer." The owner replied that he had already accepted an offer to rent the house from the renter's cousin. The renter then filed a lawsuit seeking to enforce the contract. If the renter is unsuccessful in his lawsuit, which of the following provides the best reason?
The contract with the cousin indirectly revoked the offer to the renter.
The state government advertised for bids from general contractors on construction of a state office building. A contractor, who intended to submit a bid, solicited bids from various sub-contractors for framing, electrical work, and plumbing. The contractor subsequently received a sub-bid on the plumbing work for the project of $360,000. The next lowest competing sub-bid was $500,000. After compiling all the acceptable sub-bids, the contractor submitted a bid on the total project for $5 million. This was the lowest bid submitted to the state, which accepted it on that basis. That same day, the contractor notified the plumbing sub-bidder that his sub-bid was accepted. A week later, the subcontractor notified the contractor that a transmission error had resulted in his plumbing sub-bid being too low by $200,000; the actual bid should have been $560,000 for the plumbing work. The subcontractor had transmitted his sub-bid to the contractor via fax, and a problem with the line caused the bid to read "$360,000," instead of the accurate "$560,000." If the subcontractor brings an action to rescind his contract with the contractor for the plumbing work, which of the following is his strongest argument for rescission?
The contractor should have known that the sub-bid was erroneous, because it was $140,000 lower than any other plumbing sub-bid.
A talented musician landed a lucrative recording contract. He entered into a contract with an elderly couple to purchase their residence for $1,000,000. The purchase contract required the musician to make an earnest money deposit of $10,000, and provided that the couple could keep the deposit in the event of breach of the contract, due to the uncertainty of selling homes in the high-end market. Shortly thereafter, the musician's recording contract was terminated when he was arrested for drug use. The musician notified the couple that he would be unable to proceed with the purchase of their home. He requested his $10,000 deposit back to pay bail, but the couple refused. If the musician prevails in an action against the couple to recover his $10,000, which of the following best explains the court's decision?
The couple was able to sell their property to another buyer for $1,100,000 soon after the musician refused to perform.
A man approached his cousin who was seven months pregnant, and said, "If you name your daughter after my mother, I will pay you $100 per month for five years." The cousin agreed and named her child after the man's mother. Afterwards, the man reneged on his promise and told his cousin that he decided not to pay her the money. Subsequently, the cousin sued the man for breach of contract. For whom should the court enter judgment? A) The cousin, because there was a bargained-for exchange. (B) The cousin, because naming the child was a condition of a gift made in consideration of carrying out a moral obligation. (C) The man, because naming the child was a mere gift promise unsupported by consideration. (D) The man, because the cousin did not experience any recognizable detriment in the naming of her child.
The cousin, because there was a bargained-for exchange.
The owner of a salvage business specialized in antique architectural hardware and other architectural elements, such as doors and window frames. He generally sold items to people who were in the process of restoring old houses and other buildings. When a nearby house was demolished, the owner obtained a large set of double parlor doors. Several weeks later, the owner spotted a customer admiring the parlor doors in his showroom. The owner said, "Hey, that's a great set of standard, 19th-century parlor doors. I'll sell them to you, including the hardware, for $1,000." The customer agreed and bought the doors and hardware for $1,000. The customer (whom the owner did not know was an art historian) was well-acquainted with the history of the demolished house. He knew that, shortly after the house was built, a well-known American folk artist painted a mural on the inside of the doors, which had been painted over by the house's owners when the style of painting went out of fashion. The customer knew that the mural would be worth thousands on the current art market. After having several layers of paint professionally removed, he arranged to sell the painting at auction for an estimated selling price of $20,000. What is the owner's best argument for rescinding his contract with the customer?
The customer was aware that the owner did not know about the presence of the mural.
A costume designer orally agreed with a producer that for $10,000 the designer would provide the 50 costumes the producer needed for his new play. The play had a surrealistic plot in which the characters were all costumed as hairy spiders to emphasize the "tangled web" of today's society. After the designer had completed almost half of the costumes, the producer decided he would rather do an old musical in which all the actors wore all white. The producer immediately advised the designer that the producer would not accept any of the costumes. If the designer sues the producer, the court should find in favor of which party?
The designer, because the oral contract was enforceable, as the designer had made a substantial start on the work.
An avid baseball fan attended a party at the home of his employer. Aware of the employee's enthusiasm for baseball the employer offered to show the man his own collection of baseball memorabilia. The employee was immediately drawn to an autographed baseball in a glass enclosure. The signature on the ball clearly read "Babe Ruth." The employee said "My God--I can't believe it--you have a ball signed by The Babe himself!" The employer nodded, saying "That's right. I inherited it from my father. It was his most prized possession." The employee immediately offered a check for $25,000 and the employer agreed to sell him the baseball. The following day the employee took the ball to a professional authenticator to have it appraised. He was shocked to learn that the signature was an obvious fake, and the baseball had no monetary value. He immediately sought the return of his check, but his employer refused. If the employee sues to rescind the contract and recover the $25,000, which of the following accurately reflects the outcome?
The employee will win based on mutual mistake.
A lawyer lived in an exquisite home located in a fashionable neighborhood. He had known a gardener for many years. One day the gardener was walking down the street when he ran into the lawyer. The gardener said to the lawyer, "I will landscape your garden for $200." The lawyer replied, "That seems like a good deal." As they were talking, the lawyer's brother-in-law walked by. The three individuals then started conversing about the stock market. Nothing further was said about the landscaping of the lawyer's garden. The next day, the lawyer telephoned the gardener and said, "I accept your offer." The gardener replied, "I can't landscape your garden because last night I contracted to landscape your neighbor's property." If the lawyer sues the gardener for breach of contract, who will likely prevail? A) The gardener, because the offer lapsed at the end of their conversation. (B) The gardener, because his contract with the neighbor effectuated a revocation of his offer to the lawyer. (C) The lawyer, because the acceptance was communicated before the attempted revocation. (D) The lawyer, because the revocation was ineffective.
The gardener, because the offer lapsed at the end of their conversation.
A six-year-old girl was kidnapped outside her home in a small town. Following the girl's abduction, her parents publicly announced payment of a $50,000 reward to anyone responsible for the apprehension of the kidnapper. The girl's abductor was described as a Caucasian male between the ages of 25 and 30 with curly blond hair. He also was identified as having a pentagram tattoo on his left arm. One afternoon, while on duty, a police officer from a nearby town stopped at a local fast-food restaurant for lunch. Inside the restaurant, the police officer noticed a man fitting the description of the kidnapper. The police officer proceeded to arrest the individual, who, in fact, turned out to be the girl's abductor. After the girl was found unharmed, the police officer requested the $50,000 reward. However, the girl's parents have refused to pay the police officer the reward money. If the police officer brings suit against the girl's parents to recover the $50,000 reward, for whom should the court enter judgment? A) The police officer, because he accepted the offer by apprehending the kidnapper. (B) The police officer, if he knew of the existence of the reward offer when he apprehended the kidnapper. (C) The girl's parents, if their intent was to make the offer open only to members of the general public. Correct! (D) The girl's parents, because recovery by the police officer is against public policy.
The girl's parents, because recovery by the police officer is against public policy.
In January, a small electronics firm borrowed $500,000 from a bank to modernize its manufacturing equipment. The loan was secured by a mortgage on the plant and its building site. When the debt was about to become due, the firm was short of ready cash, and the bank threatened to foreclose. Fearing the impact that such a foreclosure would have on his investment, a shareholder who owned 25% of the firm's stock intervened on behalf of the company. The shareholder told the bank officials that if they would refrain from any legal action against the firm for one year, he would personally "stand as surety and guarantee" the loan. The bank orally agreed to the shareholder's surety arrangement. The next day, however, the shareholder decided that due to adverse conditions in the electronics industry, the firm was, at best, a marginal credit risk. Believing that his suretyship commitment had been imprudent, the shareholder contacted the bank and repudiated his agreement. Thereafter, the firm became insolvent and defaulted on the $500,000 loan, and the bank sued the shareholder as the firm's surety. Which of the following is the most likely outcome?
The shareholder will be liable, because the shareholder's main purpose in making his suretyship promise was to further his own economic advantage, rather than to benefit the firm.
A homeowner said to a roofer, "My roof leaks. I think the old tiles are cracked. If you will replace them with all new tiles, I will pay you $5,000." The roofer replied, "Sure, if I can clear my busy schedule." The homeowner then remarked, "That's all right, but let me know soon." Three days later, the roofer drove his pickup truck to the homeowner's home and unloaded the materials and equipment needed to perform the roofing job. When the homeowner looked out his window and saw what was transpiring, he immediately ran outside and exclaimed, "Stop! The deal's off. I decided to repair the roof myself." In an action by the roofer against the homeowner for breach of contract, which of the following would provide the roofer with his best theory of recovery? A) A bilateral contract was formed when the roofer purchased the materials and equipment needed to do the job. (B) A bilateral contract was formed when the roofer said, "Sure, if I can clear my busy schedule." (C) The homeowner made an offer that proposed a unilateral contract, and the offer became irrevocable when the roofer purchased the materials and equipment needed for the job. Correct! (D) The homeowner made an offer that proposed a unilateral contract, and the roofer manifested an intent to accept the offer when he began performance by unloading the materials and equipment at the homeowner's house.
The homeowner made an offer that proposed a unilateral contract, and the roofer manifested an intent to accept the offer when he began performance by unloading the materials and equipment at the homeowner's house.
A man entered into an oral contract with a dog walking service to walk his two greyhounds every weekday afternoon at a cost of $100 per week. An employee of the service arrived every day at the agreed-upon time and walked the dogs. A month later the service contacted the man to say that they would no longer be honoring the contract because a new customer had requested the same time slot and had offered to pay $200 per week. The man files a lawsuit seeking the enforcement of his contract with the service by specific performance. Which of the following accurately predicts the outcome?
The man will lose, because an employer may not force an employee to work for him by seeking specific performance.
A man offered to buy a woman's farm for $100,000. The woman did not wish to sell her farm, but she jokingly accepted the offer because she did not believe that the man has the $100,000. The man and the woman worked out the terms of the contract and the woman, still joking, wrote out the contract on a sheet of paper which both parties signed. The man took the writing and subsequently tried to enforce it, arriving with a check for $100,000. In a suit by the man against the woman, what is the likely outcome?
The man will win, because the contract is binding even if the woman did not intend to sell her farm, as the man actually believed this to be a serious transaction and his belief was reasonable.
On Monday, a man told a gardener, "I am having a party on Sunday and I want my house to look good. If you will promise to mow my lawn by Saturday, I will pay you $50." On Friday, the gardener arrived at the man's home just as the man was leaving for work and began to mow the man's lawn. The man said nothing to the gardener, but drove off as he saw the gardener unloading his lawn mower. When the man arrived home from work that evening, he noticed that only half of his lawn had been mowed. He then found a note from the gardener slipped into his mailbox which read, "Sorry, but I ran out of gas to power the lawn mower and did not have time to buy more gas to finish the job. I'm taking the weekend off, but I will be back Monday morning to finish the work." If the man brings suit against the gardener for breach of contract, who is likely to prevail? The gardener, because he never accepted the offer made by the man. (B) The gardener, because he offered to cure the defective performance by finishing the job on Monday morning. Correct! (C) The man, because the gardener's part performance necessarily implied an acceptance and a promise that he would render complete performance. (D) The man, because under the doctrine of equitable estoppel, the gardener's part performance was evidence of his intent to honor the entire contract.
The man, because the gardener's part performance necessarily implied an acceptance and a promise that he would render complete performance.
A man offered to sell his barbecue to his neighbor for $100. After receiving the man's offer, the neighbor responded, "Let me think it over." The man then said, "If you say so." The next day, the man sold the barbecue to his brother for $100. Thereafter, the neighbor decided to accept the man's offer, but learned from a reliable source that the barbecue had been sold to the brother. If the neighbor sues the man for breach of contract, judgment should be for whom? A) The man, because the offer to the neighbor terminated when the neighbor learned of the sale to the brother. You Answered (B) The man, because there was no consideration to keep the offer open for an extended period of time. (C) The neighbor, because the offer became irrevocable for a reasonable time when the man allowed the neighbor to "think it over." (D) The neighbor, because he is a merchant.
The man, because the offer to the neighbor terminated when the neighbor learned of the sale to the brother.
On Monday, a man offered to sell his lawn mower to his neighbor for $100. After receiving the man's offer, the neighbor responded, "Let me think it over." The man then said, "If you say so, but I need to know in a day or two, tops." On Friday, the man sold the lawn mower to his brother. Thereafter, the neighbor decided to accept the man's offer and walked to his house, only to find the man's brother loading it onto his truck. If the neighbor sued the man for breach of contract, judgment should be for whom?
The man, because the offer was terminated due to the lapse of time.
A 16-year-old girl purchased an expensive pair of designer jeans at a retail store. She paid for the jeans by writing a check in the amount of $150, although she was aware that her account had less than $100 in it. The following day the girl wore the jeans to school. During her fourth period art class she spilled a bottle of paint thinner on herself, ruining the jeans in the process. After school she went home and threw the jeans in the trash. Several days later the store manager discovered that the girl's check had been returned marked "insufficient funds." The store promptly sued the girl and her parents for $150 based on breach of contract. Which of the following is true?
The store cannot recover from anyone.
A cleetch is a custom-designed transmitter device that is used in wireless phones. A phone company entered into a written contract with a cleetch manufacturer to purchase 1,000 cleetches for the total contract price of $100,000. After the 1,000 cleetches were manufactured, the phone company received a telephone call from the manufacturer. During their conversation, the manufacturer told the phone company that the manufacturer would not deliver the cleetches unless the phone company agreed to pay an additional $5 per cleetch. Reluctantly, the phone company agreed to pay the additional $5 per cleetch. Following their phone conversation, the manufacturer authorized the delivery of the 1,000 cleetches to the phone company. After the transmitter devices were accepted by the phone company, the phone company sent the manufacturer a check in the amount of $100,000. The manufacturer has made repeated demands for the additional $5,000, which the phone company refuses to pay. The manufacturer filed suit against the phone company to recover the additional $5,000. (A) There was no new consideration for the phone company's promise to pay the additional $5,000. Correct Answer (B) The manufacturer acted in bad faith in demanding the additional $5,000. (C) The manufacturer's demand for the additional $5 per cleetch makes the contract unconscionable. You Answered (D) The price modification materially altered the terms of the contract and, thus, did not become part of the bargain.
The manufacturer acted in bad faith in demanding the additional $5,000.
An island nation was the only nation in the world that produced a rare form of incense for the world market. An international corporation was one of the few companies that could acquire the incense to sell to other merchants. The corporation sent out an announcement to its customers on September 1, announcing the availability of the rare incense that the corporation would have for the following year. They offered their customers 12-ounce lots of its specialty incense for $100 per lot. They also offered the incense in either stick or cone form. The owner of a chain of specialty shops found himself, a week before Christmas, out of his stock of rare incense because of good holiday sales. The owner sent a telegram to the corporation ordering 200 lots of the cone incense. The telegram also indicated he needed the incense delivered by the end of the year, payment to be made upon shipment. The corporation agreed. The corporation delivered the incense on December 30, but sent stick incense instead of cone incense. Which of the following options is not an available remedy to the owner?
The owner may demand treble damages.
A shirtmaker and a retailer entered into a written contract whereby the shirtmaker agreed to supply the retailer 1,000 painted sweatshirts, in accordance with specifications set forth in the contract, for sale during the Christmas season. The goods were to be shipped to arrive at the retailer's store in 10 shipments of 100 each. The first shipment was to be delivered on Sept. 1. The remaining shipments were to be made at one-week intervals until the middle of November. The first shipment arrived at the retailer's store on Sept. 6, and contained only 80 sweatshirts, 10 of which did not conform to the retailer's design specifications. Which of the following most accurately sets forth the obligations of the parties on Sept. 6?
The retailer may not terminate the entire contract for breach of the contract obligations with respect to the first installment unless the first shipment substantially impairs the value of the whole contract.
A retailer makes a deal with a wholesaler to purchase 500 widgets at a price of $1,000 per widget, to be delivered by June 1. The retailer makes sure to tell the wholesaler that time is of the essence. The wholesaler does not deliver the widgets until June 15. One of the retailer's customers, who needed widgets by June 5, cancels his order with the retailer, costing the retailer $1,000,000 in lost profits. The retailer seeks to recover his lost profits and seeks your legal counsel. What do you advise?
The retailer may sue to recover his lost profits, because the wholesaler is liable for any damages that flow from the breach.
The owner of a retail garden supply store ordered 500 terracotta flower pots from a wholesaler for a total price of $2,500. Under the contract, the wholesaler is to deliver the flower pots to the store on May 5. On May 1, the wholesaler delivers the flower pots to the store. Upon delivery, the owner of the store inspects the shipment. Although the wholesaler's catalog stated that the flower pots had drainage holes, the flower pots which were delivered did not. The store owner immediately notifies the wholesaler that the flower pots are defective. The wholesaler offers to replace the flower pots with a shipment of conforming flower pots to be delivered on May 4. The store owner refuses the wholesaler's offer and tells the wholesaler that he has decided to buy flower pots from a different wholesaler. Which of the following is the most accurate description of the parties' rights?
The store owner had the right to reject the flower pots, subject to the wholesaler's right to cure.
An entrepreneur ran an errand service. He owned his own business for more than 20 years, and developed a good reputation in the local community as a hard worker who kept his customers satisfied. He contracted with a widow to pick up her prescriptions from the pharmacy each month. The agreement between the entrepreneur and the widow contained no provision regarding assignment of the agreement. Which of the following is true if the entrepreneur decided to assign the contract to his friend, the operator of another errand service, who had also been in business for many years? (A) A novation exists. Correct! (B) The widow would be required to accept performance by the friend. (C) The widow could refuse to accept performance by the friend. (D) The entrepreneur is in breach of his contract with the widow.
The widow would be required to accept performance by the friend.
A woman had known a hairstylist for many years. One day, the hairstylist was walking through the mall when he ran into the woman. The hairstylist said to the woman, "If you come by the shop tomorrow, I will straighten your hair for $20." The woman replied, "That's a great price." Thereupon the woman's husband approached and the three then started gossiping about a man who walked by wearing some out-of-fashion shoes. The next day, the woman arrived at the hairstylist's shop and said, "I accept your offer." The hairstylist replied, "I can't straighten your hair because after we spoke yesterday, I contracted with several other people to do their hair, and now I'm all booked up." If the woman sues the hairstylist for breach of contract, who will likely prevail?
The woman, because she accepted the offer before the hairstylist revoked it.
A tomato genetics stock researcher had developed and produced a variety of square tomato. The researcher believed that this would revolutionize sandwich-making. On May 1, the researcher orally agreed to sell five tons of this square tomato to a sandwich shop manager for $5,000. The $5,000 was payable on May 31. On May 5, the researcher dictated the agreement to the researcher's secretary, who was more familiar with typing research papers than with typing contracts. She inadvertently typed in $4,000, instead of $5,000 as the price. Neither the researcher nor the manager noticed the mistake in the purchase price. Both signed the agreement as it was typed. The manager refused to pay more than $4,000 for the square tomatoes, and the researcher filed an action for the additional $1,000. Which of the following is the strongest argument in favor of the researcher?
There was a mistake in integration
After several days of negotiations, a homeowner wrote to a plumber and said, "Will pay you $3,000 if you will install new plumbing in my home according to the specifications I have sent you. I must have your reply by March 30." The plumber replied by a letter that the homeowner received on March 15 stating, "Will not do it for less than $3,500." On March 20, the plumber wrote to the homeowner, "Have changed my mind. I will do the work for $3,000. Unless I hear from you to the contrary, I will begin work on April 5." The homeowner received this letter on March 22 but did not reply to it. The plumber, without the homeowner's knowledge, began the work on April 5. Which of the following best characterizes the legal relationship between the homeowner and the plumber as of April 5? (A) A contract was formed on March 20, when the plumber posted his letter. (B) A contract was formed on March 22, when the homeowner received the plumber's letter. (C) A contract was formed on April 5, when the plumber began to work. Correct! (D) There was no contract between the parties as of April 5.
There was no contract between the parties as of April 5.
A rare coin dealer and a collector met at a stamp-and-coin fair that was held on a monthly basis. The dealer had a mint condition 1905 Silver Eagle in his inventory that was valued at well over $10,000. The collector desperately wanted to purchase the coin, but knew that he did not have enough money to make the purchase. The two spoke for a while, and before leaving, the following note was written from the dealer to the collector: "I will hold the 1905 Silver Eagle you were eyeing up at the fair today for sale to you alone until the next fair." The dealer signed and dated the note and handed it to the collector. If the collector wanted to purchase the coin at the following fair, is the offer still in force?
Yes, because it was a firm offer.
The owner of a popular sports bar wished to purchase 10 cases of a best-selling brand of beer. His secretary telephoned what she believed to be the correct number for the brand's closest distributor and placed the order. She told the distributor that the beer was so popular that "it sells out as soon as we can stock it!" Unbeknownst to the secretary she had mistakenly dialed the number of a fledgling micro-brewery from whom the tavern owner had purchased once in the past. The beer from the micro-brewery had not been well received and the owner had decided not to reorder. The micro-brewery was unaware of this decision and assumed that the secretary's complimentary comment referred to its product. They promptly shipped the ten cases and included an invoice in the amount of $400 marked "payable upon delivery." When the shipment arrived the owner refused to accept it. He called the microbrewery and said that the order had been a mistake and no payment would be forthcoming. If the micro-brewery sues the tavern owner, will the micro-brewery win?
Yes, because it was unaware of the secretary's mistake.
Knowing that his niece was looking at a red sedan on his used car lot, an uncle sent a signed email to his niece one Friday afternoon, promising to sell her the red sedan from his lot for $1,000, and stating that she could have the weekend to think about it and let him know. After reading the email, the niece sent her uncle a reply that stated, "The price is a little high. I'll give you $800." The uncle responded via email, "I will not accept $800; it is worth more than that." On Saturday, the niece emailed her uncle and said, "I changed my mind, I will pay $1,000." On Sunday, the uncle responded that he refused to sell the niece his car. If the niece brings a cause of action against her uncle to enforce the agreement, will she prevail?
Yes, because she accepted the uncle's terms before the uncle took any action contrary to the offer to the niece.
A homeowner hired a contractor to remodel her kitchen, pursuant to the design of a famous architect. The contract specifies that the homeowner shall pay the cost of the materials up front, but the labor costs of the contract price will be due only upon the architect's certification of satisfaction that the contractor's work is in compliance with the architect's designs and specifications. The architect had worked with the contractor on another project, and was not satisfied with the contractor's work on that project. In fact, that project is currently involved in litigation. Although the homeowner's kitchen was remodeled according to the architect's designs and specifications, the architect withheld the certificate of satisfaction unless the contractor would make certain concessions in the unrelated litigation, which the contractor refused to do. The homeowner, not knowing about the litigation between the architect and the contractor, refused to pay the contractor without the architect's certification. The contractor is now suing the homeowner for payment under the contract. Will the contractor prevail?
Yes, because the architect has withheld certification of satisfaction in bad faith.
A businessman lived in Japan. He sent a letter to a California car dealership stating that if the dealership would extend his son the credit, he would guarantee the purchase price of any car. The dealership received the letter on February 9, and on February 10, sold a car to the son for $11,500. On February 11, the businessman died suddenly. Unaware of his death, the agency sent him a letter indicating its acceptance of the offer and notifying him of the sale. The dealership also noted that the son had a good credit rating and that the dealership would have extended him credit even without his father's guarantee. Two months later, the son also died suddenly, leaving a bankrupt estate. The dealership then sought to recover the balance of the car's purchase price from the businessman's estate. Would the dealership prevail in a suit against the businessman's estate for the balance owed on the car?
Yes, because the dealership accepted the businessman's offer before his death.
A neon sign designer contracted with a theater to create and mount a splashy new sign using the theater's new logo by June 1. After many consultations, the sign was completed on May 30. However, due to a shortage of scaffolding, the sign was not mounted until June 5. The theater director asserted that the theater owed nothing to the designer, because the designer had completed the project four days later than promised. Is the theater required to render payment under the contract despite designer's delay in completing the project?
Yes, because the designer's breach was not a material one.
A science fiction fan met a friend while attending a convention celebrating the science fiction fan's favorite television show. The friend, a swordsmith, had a table in the dealer's room, where the friend sold custom-made swords and accompanying accessories. The science fiction fan purchased a custom-made sword. On the bill of sale, the friend noted that the science fiction fan prepaid $300 and received a scabbard, with his actual sword to be delivered in two months. The blade was to be made according to the science fiction fan's specifications. Six months later, the science fiction fan received his sword. Although substantially similar, the sword did not match the science fiction fan's specifications. Can a court order a rescission of the contract?
Yes, because the friend materially breached the contract.
An inventor and manufacturer of what he predicted will be the novelty craze of the future was inspired by the legendary success of the pet rock to invent the pet dust bunny. He collected dust balls from under his bed and dyed the dust bunnies a variety of psychedelic colors. He then entered into a contract to sell 200 dust bunnies to a novelty shop. The inventor was only able to collect enough balls of dust to create 180 dust bunnies, so he delivered these 180 to the owner of the shop. The owner accepted the shipment and paid the inventor the agreed upon contract price. If the owner sues the inventor for damages for breach of contract, is the owner likely to prevail?
Yes, because the inventor did not perform his obligation under the contract.
A well-known rodeo performer lived in the southwest. One day, a rancher approached the performer and said, "If you will ride my bucking bronco for one minute, I will pay you $500." The rodeo performer then purchased a special saddle for the bronco ride. After saddling the rancher's bronco, the rodeo performer started riding when the rancher suddenly yelled, "I hereby revoke my offer." If the rodeo performer thereafter goes ahead and rides the bronco for one minute, will he recover the $500? A) Yes, under the doctrine of quasi-contract. Correct! (B) Yes, because there was an offer for a unilateral contract that became irrevocable prior to the rancher's attempted revocation. (C) No, because the agreement lacks consideration. (D) No, because the rancher's revocation was effective since the rodeo performer had not completed performance.
Yes, because there was an offer for a unilateral contract that became irrevocable prior to the rancher's attempted revocation.
Wanting to spend his 18th birthday somewhere exciting, a teenager traveled from his home in a rural part of the state to the city. He arrived in the city a couple of nights before the big day. While he could have spent the night with friends, the teenager wanted to live it up, and he checked into one of the best hotels in the city. The following morning, the teenager informed the management that he was a minor and, in fact, could not pay for his lodging. While frustrated, the manager let the teenager go, because he felt it would be too difficult and time-consuming to recover the lost fees. Six weeks later, the teenager felt guilty about what he had done. He phoned the manager and promised to pay the bill if the manager would send him a new copy. When the bill arrived, however, the teenager realized that he still could not afford to cover the high cost of his hotel stay. Is the teenager's promise to pay enforceable?
Yes, it is fully enforceable
