1. ABC Inc., sponsors the \"Pioneer Trial Ultramarathon,\" with an advertised fi
ID: 2495527 • Letter: 1
Question
1. ABC Inc., sponsors the "Pioneer Trial Ultramarathon," with an advertised first price of $10,000. The rules require the competitors to run 100 miles from the floor of Blackwater Canyon to the top of the Pinnacle Mountain. The rules also provide that ABC reserves the right to change the terms of the race at any time. Andy enters the race and is declared the winner. ABC offers him a price of $1,000 instead of $10,000. Did ABC and Andy have a contract? Explain.
2. Andy, a sports marketing expert, met with Ben, the owner of the San Francisco Crazy Baseball team, many times to discuss the Andy Benson Crazy Company (ABC). Andy was paid as a consultant. Later, he filed a suit, seeking an ownership share in ABC. There was no written contract for the share, but he claimed that the matter had been discussed. Does Andy have a valid claim for payment? Discuss.
Explanation / Answer
1. THE OFFER IN THIS CONTRACT IS AMBIGUOUS DUE TO THE FACT THAT THE TERMS OF THE RACE CAN BE CHANGED ANY TIME. THE TERMS OF THE OFFER ARE NOT DEFINITE. ALSO THE ADVERTISEMENT DOES NOT GUARANTEE THAT THE ABC HAVE SUFFICIENT FUNDS TO FULFILL ITS OFFER. THUS OVER HERE ANDY AND ABC ARE NOT IN CONTRACT DUE TO THE LACK OF PROPER OFFER AND ITS ACCEPTANCE BY BOTH THE PARTIES.
2. YES ANDY HAS A VALID CLAIM IN THIS CASE BECAUSE OVER HERE HE CLAIMS THAT BOTH THE PARTIES HAVE AGREED ORALLY FOR THE CONTRACT, IN WHICH HE WOULD BE OFFERED SHARE IN THE ORGANIZATION. CONTRACT CAN BE MADE ORALLY ALSO. THEY NEED NOT BE IN WRITING.
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