Exam 7: Contract Formation

Aiden says to Bob, "I'll sell you this rare book for $1,000." Aiden is the:

Your school is negotiating with another school to run a joint program. The other school is not sure that your college can handle the increase in students and tells your administration that it will join the joint-program initiative if your college increases its faculty. Based on this offer, two full-time tenure track faculty members are hired. Soon afterward the other college decides that it will not participate in the program and ends negotiations. What rights does your school have?

Which of the following promises ordinarily need not be in writing to be enforceable?

When a store places an advertisement in a newspaper or runs an ad for broadcast on the radio, what are the store's obligations if a customer arrives at the store and demands to purchase the item at the advertised price? Be complete.

Robert is about to graduate college, and his parents tell him that because he is the first member of the family to graduate college, they want to buy him a new, but inexpensive, car. They have the money to buy the car, and Robert is excited about getting his gift. Robert owns a used car but has never owned a new car, so this will be his first. He decides to keep his used car because he had been promised a new car by his parents for his high school graduation and never got it. On graduation day, his parents tell him that they have decided to use the car money for a vacation and there will be no new car.

Aimee is a 21-year-old college student. Her parents are worried about her being away from home, so they tell her that if she goes through both the fall and spring semesters without drinking alcohol, they will buy her a new car. Aimee does in fact complete both semesters without drinking.

What is the mailbox rule, and how does it apply in the following situation? Explain whether acceptance is effective and a contract is formed. Day 1: An antique dealer e-mails an offer to sell a highly collectible Art Nouveau glass vase to a collector for $1,500. Day 2: Collector receives the offer, prints out the e-mail, writes "ACCEPTED, 1 Art Nouveau glass vase for $1,500. Collector," and faxes Dealer the acceptance. Day 3 (9 a.m.): Dealer's assistant receives Collector's fax, but Dealer is out of the store all morning. Day 3 (12 p.m.): Realizing he can get much more for the vase at auction, Dealer calls Collector to revoke his offer. Day 3 (1:30 p.m.): Collector's acceptance fax is delivered to Dealer.

Generally, for an acceptance to create a noncommercial contract, the acceptance must be without qualifications or conditions.

A minor's contract for actual necessities does not require that the minor be mentally competent for the contract to be valid.

If Bill Gates goes into a car dealership and buys every car on the lot at the sticker price, the dealer has suffered no contractual detriment because he's in the business of selling cars and got full price.

In Raffles v. Wichelhaus, the court refused to enforce the contract for a boatload of cotton, shipped to but refused by Wichelhaus, because:

After an offer is made, the offeror may revoke that offer at any time, even if the offeree has not been given a reasonable period of time to decide whether or not to accept.

For a binding contract to exist, not only must there be agreement but the agreement must be supported by ___________.

Duress must be based on a physical threat and not an economic one.

The legal detriments exchanged by the parties must be equal, or reasonably close to equal, for consideration to be valid.

Jonathan's Soccer Mart (JSM) advertises a pair of boots on sale. The normal price is $150 and the sale price should have been $135, but the advertisement says $15. Josh walks into the store, picks up a pair of the boots, and puts $15 on the counter, demanding to purchase the boots at the advertised price. Which of the following is correct?

Reasonableness of an offer requires that the offeror have an objective intent to contract when making the offer.

Larry has had a few beers and is starting to get a bit drunk. He isn't acting strange, and in conducting conversations with others he's slurring only an occasional word or two. Larry, should he enter into a contract in this condition, would be considered mentally incompetent and his contract would be void.

Maria has just sat down and is ready to take her last final exam before graduating. Just before the tests are distributed, she discovers that all three pens that she brought are out of ink. She turns to Mike, a classmate, and asks to borrow a pen. Recognizing her predicament, he says, "No, I won't lend you a pen, but I'll sell you this Bic ballpoint pen for $100." Recognizing that she has no alternative, she gives him the money. A Bic pen is worth about 10 cents. Afterward she demands a return of her cash and offers to return the pen. Mike laughs and says, "No, a deal's a deal." How would the courts look at this "deal"?

Boris skydives from a plane and gets tangled in a tree, hopelessly suspended and swinging precariously in his parachute from the branches of the tree. Natasha sees that he is in trouble and comes to his rescue. Once Boris is safely on the ground, he gratefully promises to give Natasha half of his life savings account. When he changes his mind, Natasha will probably be unsuccessful in enforcing his promise.