1-The contract is on 15th Oct because A offer on 1st and B made an advance payme
ID: 373417 • Letter: 1
Question
1-The contract is on 15th Oct because A offer on 1st and B made an advance payment but official contract was not signed.It is on 15th when B handed written acceptance of the offer to A. Contract will be signed on that day when there will be written acceptance of the offer.
2-The contract is made on 17th day when Ben sends an acceptance of the offer made by Jerry.
3-This is contract is made with a term that the boat moved to C's boat slip at the same marina.
4-It is not a valid offer because specific numbers and figures are not given.
Explanation / Answer
1. A offers to sell 2 acres of land to B for $2,000,000. The offer is made on October 1st. A states that she will hold the offer open until November 2d, if B pays her $500. B makes the payment on the same day. On October 13th A tells B that she is withdrawing the offer. On October 15th B hands A a written acceptance of the offer. Explain why there is or is not a contract as of the 15th.
2. Ben wants to buy the milk he needs on a monthly basis for his ice cream factory. Jerry owns a dairy farm and offers to sell Ben four thousand gallons of milk per month for $1 per gallon. Jerry tells Ben that the offer will be held open for two weeks. Ben sends an acceptance on the 17th day after Jerry made the offer. Explain why there is or is not a contract.
3. B offered to sell a boat to C for $35,000. C’s response stated “I accept your offer but I will also need the boat moved to my boat slip at the same marina.” Is there a contract? If so what are the terms? Explain.
4. Perfect Poultry Company offers to sell a specified number of chickens and turkeys to Quick Markets. Without including any additional terms in the proposal it is a valid offer to form a contract? Explain.
5. Dave’s uncle tells Dave that if “he feels that Dave deserves it,” he will give Dave $10,000 when Dave graduates from college. Dave agrees to the deal. Is the uncle’s promise enforceable if Dave graduates? Explain.
6. Jennifer was about to be struck by a speeding car. Eva pushed her out of the car’s path, just in time to save her from being struck. However, Eva was herself struck by the car and was seriously injured. Several weeks later, Jennifer promised Eva that she would pay her $1,000 per month for life. Is Jennifer’s promise enforceable? Explain.
7. Vincent entered into a contract to sell his laptop to Millie, age 17. Millie took possession of the computer and continued to use it for five months after reaching her 18th birthday. How significant is her continued use of the computer?
8. Baker, a real estate broker, only licensed in Oregon, concluded a land sale in California. If the California client refuses to pay Baker the commission on the sale may he successfully sue the client for breach of contract? Explain.
9. DG Corp. has recently created a genetically modified cow, which they named Elsie. The MJ Dairy Co. contacts DG about buying Elsie. On November 1st, DG and MJ sign a contract stating that DG will sell Elsie to MJ for $50,000. What neither party knows is that Elsie died during the preceding night. Explain the significance of that event.
10. Gene sells a trail bike to Hollis without disclosing that the odometer, which reads 10,000 miles, was disconnected 90,000 miles ago. Does Hollis have to pay the contract price? Discuss.
11. Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in Overseas Bank through Newt’s investment firm. Unknown to Mona, Newt realizes ongoing commissions from the investment. On what basis could Mona rescind the contract? Discuss.
12. Carl leases 2 acres of land to his friend, Larry. Larry intends to build a house on the property which will significantly increase its value. Larry applies for a $1 million loan from Fleet Bank to build the house. Carl orally promises the bank that he will be responsible for paying back the loan if Larry does not. On that basis the loan is approved.
Is Carl’s promise enforceable if Larry fails to pay back the loan? Explain.
13. Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund offices for as long as Hedge Fund needs them. This contract is/is not enforce¬able?
14. The Caplans contract with Fain Construction to build a house on their lot for $300.000. The written contract specifies that Fain is to satisfactorily install Crane brand bathroom fixtures. Fain completes construction but the Caplans refuse to pay the full contract price because they are not satisfied with the bathroom fixtures installations. Discuss whether Fain is or is not entitled to the full contract price.
15. Polly agrees to buy Quinn’s Cycle World but only if Ridgeline Credit Union approves the financing. This approval is a:
a. Condition precedent.
b. Condition subsequent.
c. An illusory promise.
16. Ed’s Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Ed’s is entitled to
a. Nothing due to the breach of contract.
b. Payment to the extent that it performed the contract.
c. Full payment of the contract price since it did substantially perform.
17. Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light’s place and assume all of its rights and duties under the contract. This is:
a. A mutual agreement to rescind.
b. An accord and satisfaction.
c. A novation.
d. A settlement agreement.
18. Omar and Penn want to discharge their contract by executing a new agreement with performance by Penn to be different from what was originally promised. This can best be accomplished by:
a. A mutual agreement to rescind.
b. An accord and satisfaction.
c. A novation.
19. Nina contracts with Office Suites Corporation to buy a suite in its Prospect Point Tower at a premium because of its undisturbed view of Quay Harbor. Unforeseeably, the town of Quay Harbor changes the zoning law, and Resort Hotels, Inc., constructs Seaview Resort, blocking what would have been Nina’s view. Nina’s best argument for a change in the Office Suites contract or its price is:
a. Frustration of purpose.
b. Objective impossibility of performance.
c. Anticipatory repudiation.
d. Commercial impracticability.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.