LAW 230CassieKing_Law230_Assignment3_Contracts

 

QUESTIONS:

1.    Delilah makes a written offer to Samson to sell her mountain bike for $1000. In her proposal, Delilah states that 'this offer will remain open for seven days.' Two days later, Delilah tells Samson that she has changed her mind. 

a. Discuss whether, under common law, Samson can still accept the offer and hold Delilah to the sale of her mountain bike to him for $1000.

2.    Catherine promised her 19-year-old son, Lawrence, that if he refrained from smoking until he was 21, that she would buy him a BMW. Lawrence has been refraining from smoking. Lawrence has just turned 21, but Catherine refuses to buy the BMW, saying that Lawrence not smoking has been good for his finances as he has some savings and, more importantly, his health.

a. Does Lawrence have a valid claim against Catherine to make her buy him the promised BMW? Why, and why not? [HINT – consideration] 

 

3. Samuel was looking to buy a chainsaw to cut tough trees in his 10-acre lot. His neighbor Sara who worked for a landscaping company and was an expert in landscaping equipment had a used chainsaw. The chainsaw was not designed for tough trees; however, Sara highly recommended it to Samuel and stated that the motor could 'certainly' handle cutting tough trees. Samuel, a little hesitant to purchase the saw, relied on Sara's expertise and purchased it for $250 from her. He spent $100 to buy some appliances for the used chainsaw to function better. The saw worked perfectly for small branches, but when he tried to cut down a big tough Oaktree, the saw broke and injured his left hand severely. The medical treatment cost Samuel $8,000. Later after recovery, he figured that the saw was not designed for tough trees.

a.       Can Samuel rescind the contract with Sara? Explain. 

b.      What remedies, if any, are available to Samuel?

 

4.    Jimmy is a seventeen-year-old who is very aware he looks as if he is about twenty-five.  Jimmy went to a computer store and bought several hundred dollars of software for cash.  Nothing was said or asked about his age.  A few days later, he attempted to return the disks, although he admitted there was nothing wrong with them.  The clerk explained that unsealed software was not returnable unless defective.  Jimmy then said he didn't have to accept that because he was a minor, and he was disaffirming his contract.

a)     In action against the store, who will prevail? Why and why not?

 

5.     Delilah makes a written offer to Samson to sell her mountain bike for $1000. In her offer, Delilah states that 'this offer will remain open for seven days if you pay $200'. Samson pays Delilah $200. Two days later, Delilah tells Samson that she has changed her mind. 

a) Discuss whether, under common law, Samson can still accept the offer and hold Delilah to the sale of her mountain bike to him for $1000. [HINT – offer/acceptance and option contracts

 

6.     Angelina told her son Bruno that "if you clean my car's interior and exterior, I'll give you $50." Bruno responded: "I'll think about it." Bruno, in need of pocket money but short on time, only cleaned the exterior, and said: "I'm done."

a) Explain to Bruno, taking into account the nature of the contract, whether he can enforce the promise owed to him by his mother, Angelina?

b) If Angelina, before Bruno had started cleaning the car, had rejected her offer, could Bruno clean the car and enforce the promise? Explain. [HINT – unilateral contracts/promise]

 

7.     HappyFace, Inc. recently sold all of its assets to Grimm, Inc.  Among the assets was an assignable equipment lease and service contract with CyberComputers, Inc. for a reasonably extensive office computer network.  The operative documents recited that HappyFace "assigned all rights and delegated all duties" in the lease and service contract and that Grimm "assumed" those duties.

a)Can Grimm sue CyberComputers, if CyberComputers refuses to fix one of the leased equipment? Why and why not? [HINT -  rights of third parties in contracts]

8.     Sam and Billie orally agreed to transfer Sam's ten-acre orchard for $30,000.  They neglected to put the contract in writing and had not arranged a time to hand over the deed or the money when the season arrived to put in new trees. Billie made a $5000 down payment to Sam, which Sam retained, and Sam permitted Billie to enter the land, at Billie's expense, and remove unproductive trees and plant replacements.  Sam now refuses to complete the conveyance, and Billie wants to sue.

9.     On May 1, 2019, Eckerly Realty Inc. mailed a written offer to Masse for the sale of an office building. The offer included an express term that: "This offer shall expire on June 30, 2019, if the acceptance was not delivered into the hands of Eckerly by the expiration date." On June 30, 2019, at 8:00 a.m., Masse sent a written acceptance to Eckerly via Masse's personal messenger. However, the messenger was not able to deliver the acceptance until July 2, 2019. On July 3, 2019, Eckerly contacted Masse, informing him that the acceptance had been delivered late, and thus refused to honor the acceptance. 

a) Was there a contract formed between Eckerly and Masse? Why and why not?

5.    Lawrence advertises in the local newspaper that he has lost his expensive wallet and offers a reward of cash ($200). John, who has not read the advertisement, finds the wallet and returns it to Lawrence. John later finds out that there is a reward for the return of the wallet, and he asks Lawrence for the cash reward.

a.    Is Lawrence legally obliged to pay John the reward? Why?

b.    Explain whether your answer would be different if John knew of the reward before he found Lawrence's wallet? Why?

 

11.  Oliver contracted with an insurance company to insure his apartment for $100K against loss by fire. The company policy provided that "the proceeds shall be payable only if Oliver gives written notice of any loss within 20 days after its occurrence." A fire destroyed the building, but Oliver gave his notice after a month to the insurance company. He ran to the insurance agent and apologized for giving late notice. The agent accepted his apology.

a.    However, must the company pay for Oliver's loss? Why and why not? [HINT – condition of performance]