Offer and Acceptance
1. The owner of a small television offers to sell it to a neighbor for $75. As the neighbor stands there thinking about the offer, a bystander says, “That’s a bargain. I’ll take it!” Is there a contract between the bystander and the owner? (LFBaPU 19E p. 117)
Valid offer
2. Perez offered to build twenty concrete mini-storage warehouses on Ander’s land, at a fixed price of $11,500 each. Two weeks later, and before Ander had accepted the offer, the price of contrete mix and steel bars had gone up by 10 percent. Perez telephoned Ander and said she would have to boost the price of each unit by $1,000. Can Perez changer her offer without liability? (old book p. 195)
Ending offers
3. Kempsky offered to sell Del Ray a bicycle for $75, but Del Rey replied, “No, too much.” The next day, Del Rey called Kempskey and said, “I’ve changed my mind. I”ll take your bike for $75.” Was a contract formed? (class book p. 194)
Ending offers
4. Sam advertised his ski boat for sale, priced at $4,500 complete with outboard engine and trailer. Barbara paid Sam $100 for a ten-day option, the money to be applied to the purchase price if she exercised her right to buy. Two days later, Sam was killed in a motorcycle accident. Is Barbara’s option still valid? If Barbara had died within the ten-day period, would the option still be valid? (Class book p. 204)
Option contracts
5. Gus walked into his local hardware store to buy exterior paint for his house. It was on sale for $35 a gallon. Gus wanted to check around but didn’t want to lose the chance to buy at the sale price. In response to Gus’s request, the manager wrote Gus a note stating, “Gus Almondson may buy up to 15 gallons of Old Dutch Exterior Grade paint for $35 a gallon anytime within the next two weeks.” The manager signed and dated the note. Is this offer binding? (LFBaPU 15E p. 105)
Firm offer
Counteroffers and Acceptance
Consideration
7. Mr. Horn promises to give his daughter a watch as a birthday present. Is this a legally enforceable promise? (from Mr. Miller’s BL website.)
Promises of Gifts
8. Tyrone, a ten year old boy, attended a mineral show in Dallas, Texas. He bought several different crystal-like stones there. One such stone was purchased from Edwards for the marked price of $5. Later the stone was identified as a diamond and valued at more than $50,000. Edwards sued to recover the stone alleging he had not received proper consideration for the purchase. Will Edwards be successful? (LFBaPU 18E, p. 142)
Equal Consideratoin
9. Kari promised to deed ten acres of land to the Ezlers. In reliance on the promise, they took possession of the land, cleared it installed an irrigation system over a one acre section, and planted fifty young fruit trees. Then, Kari, seeing the improved property, changed her mind. May the Ezlers complete the transfer even though they gave Kari no consideration? (Class book p. 222)
Promisorry estoppel
10. Hicks is cited for violating the speed limit. Her brother, who lives in another state, writes, “I will give you $100 if you do not violate the speed limit for one year.” Hick complies. Is the promise binding? (from Mr. Miller’s BL website)
Pre-existing duty
11. When Bob began college at age 21, his godmother promised to give him $1000 at the end of each of the following four years if he remained in school and refrained from smoking tobacco. She also promised a bonus of $1000 if and when he received his bachelor of science degree. Are the godmother’s promises legally enforceable? (LFBaPU 15E p. 139.)
12. When they were both college freshmen, Steiner borrowed $200 from Faber so he could attend the big game is Chicago. Steiner never repaid the debt, and after five years, it was barred by the statute of limitations. Then Steiner sent Faber a Christmas card on which he added this note: “I haven’t forgotten those four 50’s I borrowed from you for the big game. Now that I’m working, I’ll pay you. In addition, I’ll take you to this year’s big game at my expense.” Is Steiner legally obligated to repay the $200?
Unenforceable gift
13. George negligently misjudge the distance between the side of his car and Brian who was on his bicycle. George sideswiped Brian , who was knocked to the ground and injured. An adjuster for George’s insurance company persuaded Brian to accept and cash a check for $1,250 in exchange for full release of George and his insurer from further liability. The payment covered Brian’s out-of-pocket losses, including the cost of repairing the bike. Later a friend told him he probably could have sued and obtained damages for pain and suffering as well. May Brian legally reopen the matter and successfully sue for more money? (Class book p. 223)
Right to sue as consideration
Capacity
14. Caroli, 17 years old, signed an agreement to buy a used computer from Egan for $430. While Caroli was on his way to pick up the computer, Egan got an offer for $550 from someone else. Ehen asked to complete the transaction, Egan told him he was unwilling to contract. Is this a voidable contract at Egan’s option? Can Caroli cancel the contract? If Egan sells the computer to Caroli, can Caroli later return the computer? (Random case packet)
Rights of minors
15. Linda subscribed to a “Book of the Month” program on her sixteenth birthday. She received monthly books from the publisher until her 19th birthday. She then attempted to disaffirm. Will she succeed? (LFBaPU 15E p.
149)
ratification
Genuine Agreement
16. During negotiations for the sale of a salt well, Hutton said the well was free of gypsum and that the brine was 90% in strength. In fact, the well did contain gypsum and was deficient in strength. Curry, the purchaser refuse to pay, claiming the contract was void because of fraud. Was it?
17. Belford, without help from a salesperson, selects, buys and tailors a suit that he thinks is mad of 50% polyester and 50% rayon. He later discovers that the suit is 100% polyester. Because of the mistake, Belford demands that the store take back the suit. (Mr. Miller)
Mistake
18. Crane busy a riding lawnmower after a salesperson convinces him that using the mower will save time and money. Crane finds that he actually spends more time and money with the new mower than he had with the older mower. He tries to recover the price paid for the mower claiming fraud. Is Crane within his rights? (Mr. Miller)
Fraud/Opinion
19. Audra’s aunt was more than 80 years old. Audra took care of her in the mornings. One day Audra offered her aunt $100 for a painting she owned. The aunt said, “Sure Audra, anything for you, my dear.” The painting was only worth $100. Has there been undue influence? (LFBaPU 15E p. 123)
Undue Influence
Proper Form
20. Bruno bought Hummel’s condominium under a written contract. The title was to transferred in thirty days. Bruno then orally agreed to buy specified items of Hummel’s furniture for the lump sum of $2,800. When she took possession of the condominium, however , she decided not to buy any of the furniture. Is Bruno legally permitted to change her mind this way without any legal liability to Hummel? (Class text p. 271)
Statute of Frauds.
21. Mansfield opened a computer repair store in downtown Pennsboro. When Shadee brought in his computer for repair, the work was estimated at more than $200. Shadee told Mansfield to go ahead with the repair. When Shadee returned to pick up the repaired machine, she refused to pay stating that she had check with City Hall and Mansfield did not have the required city business license and that the contract was therefore void. Is the contract legally enforceable against her? New Book
Not a competency license.
22. Highman bough a new computer from Advance Electronics. She signed the store’s usual contract, which stated the terms completely. Later, Highman alleged that as part of the bargain, the salesperson orally
promised that if the factory list price was reduced within 2 months of the purchase, he would refund the same amount to Highman. The factory list price was reduced but Advanced Electronics refused to pass the savings on to Highman. Was Highman entitled to the savings? Explain. Old book p. 266
23. Crump was the owner of a restaurant. She applied to the state liquor control board for a $500 license to sell alcohol. When the application was denied, Lynch, a customer, told Crump that he know someone on the board and could get her a license for $7500. Crump paid Lynch the money but never received the license. Can she recover the money? Why?
Transfer and Discharge of Obligations – Chapter 11