The buyer of a home makes an offer in writing to seller to purchase seller’s home. But before the seller can accept, the home burns down. Can the seller still accept?
No; the offer lapsed when the home burned down.
No; the offer terminated when the home burned down.
Yes; the seller can still accept and sell the house to buyer when it is rebuilt.
Yes; because the offer for a home, when it is in writing, is valid and irrevocable for a reasonable period of time if no time period to accept the offer is communicated.
“I will sell you this car for $10,000 cash”.
This is a valid offer, but only if it is expressed in writing
This is not a valid offer because it only invites the other party to negotiate
This is a valid offer because it expresses a willingness to conclude the deal if the other party agrees to pay the required $10,000
This is not a valid offer because it doesn’t express the terms with sufficient clarity and definiteness
On August 1, you receive a message on your voicemail from the school you are looking to teach in. The voicemail is from the Accounting Department Chair, offering to hire you to teach a class for the semester. On August 5, after you received the Chair’s message but before you have the opportunity to return the call to accept, the Chair notifies you that it hired someone else, and that it the offer made to you is being terminated.
Do you have any legal recourse against the school?
Yes, because an offeree must always be provided a reasonable opportunity to respond to an offer
Yes, because an answering message meets the formal requirements for an offer
No, because no contract was formed
No, because consideration was not specified
Batman: “Robin – I will pay you $5,000 if you paint my home within three days.”
Robin: “I accept.”
Has a contract been formed between Batman & Robin?
Batman: “Robin – I will pay you $5,000 if you agree to paint my home within three days”.
Robin: “I accept.”
Has a contract been formed between Batman & Robin?
Of the following, all are true about quasi-contracts except:
Quasi contracts are a fiction imposed by the courts “as if” the parties actually formed a contract
Quasi-contracts are often actual contracts formed by the parties
Quasi-contracts are usually not imposed if an actual contract exists
Quasi-contracts are usually imposed to prevent unjust enrichment by one of the parties
When is a revocation effective?
A revocation is effective upon dispatch by the offeror
A revocation is effective upon receipt by the offeree
A revocation is automatic after a reasonable amount of time
A revocation is effective when the offeree agrees to the revocation
Which of the following contracts is not required to be in writing?
A contract to buy a home
An agreement to buy a piece of jewelry from a jeweler that is priced at $600
An agreement to take part in a work-study program during the Fall & Spring semesters
A three-year contract to assist as a tutor in your school’s Economics department
Nebula offered, in writing, to sell Ant-Man a piece of land for $200,000. Nebula signed the offer and wrote that it was contingent on Ant-Man accepting within 10 days. On day five, Nebula received and accepted a better offer from Captain America and transferred the land to Captain America on that day. Ant-Man, who didn’t know about the sale to Captain America, called Nebula on day seven and accepted her offer. Nebula told Ant-Man it was too late, that she got a better offer from Captain America, and that Captain America now owned the land. Ant-Man sues Nebula for breach of contract. Judgment for whom? Choose the best answer. Judgment for Ant-Man, because Nebula’s offer was irrevocable for ten days, and Ant-man accepted on the seventh day
Judgment for Nebula, because her offer was revocable
Judgment for Ant-Man, because Nebula’s offer was in writing
Judgment for Nebula, because even if Nebula is liable to Ant-man, there’s no other legal remedy for this situation because Captain America now owns the land
Cookie Manufacturing Co. (“Cookie”) offered to sell to a local retail bakery (“Bakery”) 300 pounds of chocolate cookies at $1.50 per pound. Bakery replied in a signed writing as follows: “We accept your offer for the 300 pounds of chocolate cookies at $1.50 per pound. Please make sure that you furnish sufficient cellophane wrapping”. According to UCC §2-207:
A contract has been formed between the parties.
A contract will be formed only if Cookie agrees to furnish the cellophane wrapping.
No contract is formed because Bakery included a new contract term in its reply.
No contract is formed because Bakery’s reply was a counteroffer.
You want to sell your used Macbook Pro to your friend, who previously expressed interest in it. After doing some research, you determine a fair market value of $500 for it and decide to offer it to your friend for this price. However, when you send your friend the offer by email, you mistakenly write $400. Your friend immediately replies his acceptance by return email. You further reply that you meant $500, but are you now bound to sell your Macbook Pro to your friend for $400?
Yes, this is a bilateral mistake about the same material fact, so a contract was formed.
No; although this was a unilateral mistake on your part, your friend should have known that you made a mistake.
Yes; this is a unilateral mistake on your part, so you are now bound to sell it.
No; you’ve made a valid counteroffer, and thus, gave your friend the right of acceptance and refusal.
You and your partner decide to get married, and on February 1st, you said to your friend, a person authorized to officiate weddings: “If you perform our wedding on August 1st, we will pay you a fee of $1,000”. Your friend, excited about officiating your wedding, spends a lot of her time preparing for the ceremony. But three days before the wedding, you and your fiancé break up. After you notify your friend about the breakup and the cancelled wedding, she sends you a bill for $1,000 anyway: $500 for the preparation time and another $500 for loss of profit income. You refuse to pay the bill. Your friend sues you and your (now ex) fiancé for breach of contract asking for $1,000 in damages. the likely outcome will be:
Judgment for plaintiff for $1,000.
Judgment for defendant.
Judgment for plaintiff for $500 for the loss of profit income.
Judgment for plaintiff for $500 for the preparation time.
Liam and Ava have known each other for many years. Liam has always admired Ava’s lake house in the Catskills, New York, and for years has been asking her to sell him the lake house. One night, as the two friends were enjoying dinner together at a restaurant, Liam asked Ava again to buy her house. Ava laughed and said: “you will never stop, won’t you? Fine, I’ll let you buy my house.” Liam, who couldn’t believe his good luck, asked “Really? Do you agree to sell your beautiful lake house and the furniture for 1.5 million dollars? My daughter is getting married in six months, she has always dreamt of getting married there!” Ava smiled and replied: “Yes. The price is fair, and your daughter can have her dream wedding there! We can sign the documents when I’m back from my vacation next month.” Liam was thrilled. The following day, he started making arrangements for have his daughter’s wedding at Ava’s lake house. He contracted with a catering service, a designer, and a construction specialist to prepare the ground and the house for the big day. He contacted a lawyer and a detailed sales contract was ready for Ava to sign when she got back. When Ava got back, however, she told Liam she has decided not to sell the lake house and that unfortunately, his daughter could not have her wedding at the lake house.
Liam is furious and turns for you for legal advice to protect his rights. He mentions that he recorded the conversation with Ava, and can prove that she agreed to sell him the lake house. One-way recording is legal in New York.
What is your legal advice to Liam?
In a contract, both of the party's matter, and they should have the consent to make that agreement, and if one party rejects the deal, they should be liable for the expenses incurred in good faith of the other parties. In the case of Liam, the case is the same because after making the contract, Ava refuses; on the other hand, the expense is incurred by Liam on the forthcoming wedding in Ava's house that is after denied. So, he is obliged with the required costs that she makes to prepare the marriage on Ava's home under the contract act. Since Ava promises to sell her house after returning from the vacation and the till the vacation is ended, he doesn't inform him about the rejection of the contract.
The UCC specifies that a contract is valid for a reasonable period if it is infinite in terms of time. Unless otherwise provided in this agreement, the contract may be terminated at any point (though many courts have held that reasonable notification to the other party is required). Relevant parties may specifically agree with such cancellation terms in a long-term contract for the sale of products. Many provisions may allow either or both partners to end at will such that a Party may withdraw and use it without fault of the other side. The terms of these 'at will' may apply to other laws or requirements for notifications. The decision to end for cau might also extend to any agreement. Typically, termination for purpose occurs if one person breaches a deal overall or if one or more listed 'standard circumstances' have transpired (for example, non-payment, failure to deliver, or breach of warranty). Likewise, unless the parties agree different, sufficient function is mainly necessary to terminate. (Dambaeva, 2020)
You enter into a landscaping contract with a friend for you to mow and water her lawn from April 1 until December 1. Your friend pays you in advance for the entire contract at the rate of $500 per month. On August 1, in response to a severe drought, your friend’s town has banned the mowing and watering of lawns until December 1.
What is the effect of the town’s ban on the contract between you and your friend? Please explain your answer.
Since the contract is not in the run due to a draught that is a natural disaster that cannot be controlled, she pays the total amount that does not fault and is required damages that she is caused. It affects my friend because he has given the real money and the loss of funds generated to her, and it also affects me as I cannot anymore mow and water the lawn.
On August 2nd, your friend asks you for the money back for the months you can no longer mow and water her lawn, but you can’t because you used it to purchase a new lawn mower. She sues you. Judgment for whom? Please explain.
Under the law, the money should be returned to him because he had paid that in good faith. According to the law, he can sue, and the loss that he is facing will be recovered from the property, or the new lawn purchased.
Damages for misconduct might be forever changed, so they are awarded to recompense the victim for all costs he directly contributed to his dependence on fraudulent conduct. 28 Once the plaintiff learns the fraud; he must alleviate his loss. Subject to that and the need for a causal link to be proved, all actual losses caused by the transactions may be repaid. In contrast, it does not apply to the usual condition of clearly rustic leans toward all things losses alleged. 29 The injured bystander can recover, although unforeseen, all losses caused by deceit—unrepresented Section 2(1).
The aggrieved victim could thus reclaim, albeit unforeseen, all losses caused by deception. Under Section 2(1) of the Misrepresentation Act 1967, a person has made a contract based on a misrepresentation and is liable to recovery. It covers misrepresentations, careless and even completely innocent, and no fraud has to be shown. However, as stated above, the court might opt to declare the agreement as subsisting if the deception is not fraudulent. Following clause 2(2), damages are awarded, but they are to be contractually assessed, following the fact that the contract exists (Šírová, 2016).
Jojo agrees to buy a small Picasso painting from Tamara for $500,000. Just prior to that, Tamara hired a reputable appraiser for a current valuation of the painting and showed Jojo the appraisal document that justified that $500,000 sales price. Satisfied, Jojo makes the $500,000 payment and takes his prized painting home. Shortly thereafter, he does some investigating, and learns that the painting was not done by Pablo Picasso. Instead, it was drawn by Paulo Picasso, Pablo’s son, and was worth only $5,000. Jojo, now furious, wants to rescind the contract and get his money back from Tamara.
Among Jojo’s possible arguments to get the contract rescinded, which one is best? Please explain your answer and rationale for choosing.
It can be said fraud because the total amount is $5000 instead of $500000, and he can resign the contract and purchased that in believing the painting is made by Picasso, not her son. Also, Picasso committed fraud because she told her to lie, and he can resign the contacts made. And it also becomes the duty of the Jojo to do proper investigation before making any agreement.
Money damages for a term of the agreement are often sought as a remedy. The money allegations may include projected harm, impairment to dependency, and payment. The non-breakers' anticipating damage gives the value of their "assumption interest" in the other party's performance. In other words, the non-violating party, through the grant of money, is placed in the position that if the infringing party had been participating. In a contractual minimum of any costs, a provider would incur, for example, when a customer contracts a particular service rate per hour and reduces the number of days, then does never use the goods. Dependability costs discuss the situation otherwise, thus rewarding the non-violent party for harm caused by the failure of the violation party to do so. For example, suppose a party has committed money upfront of a contract which the other party accepts but doesn't complete. In that case, it may pay back the expenditure – the 'dependent' interest of the semi-party. In other words, the losses incurred by a non-uninventive party counting on the commitment of its counterparty to conduct adequate damages replace them (Kichigin, 2020).
Adam wants to renovate the bathroom and kitchen in his home, and he hires Stephanie to do this work. They enter into a contract after agreeing to a cost of $50,000. However, once Stephanie starts work, she realizes that it will cost $25,000 extra to complete the work that she promised. To show good faith to Adam, Stephanie tells him that she will split the added cost with Adam and asks Adam for an additional $12,500. Adam refuses to pay the additional $12,500, and Stephanie threatens to stop work on the renovation.
After fearing that another contractor will probably charge much more, Adam agrees to pay the additional $12,000. After the renovations are completed, Adam refuses to pay the extra $12,000. Stephanie sues Adam. Who wins? Please explain.
In this case, Stephanie wins because Adam breaches the contract. Stephanie and Adam sign a contract for the project, which is settled at $50,000, soon after the contract enacts an additional cost of $12,000. Adam agrees to pay the additional $12,000. At last, Adam refuses to pay the extra $12,000. A contract is a legally binding document between two or more parties. During the lifecycle of a contract, one or both parties may feel the need to alter one or many parts of the contract. This indicates that there may be changes to the basic entitlements and duties of a contract. There is no specified deadline to change the entire contract or portion of it. The procedure may take off as long as both parties agree. If a contract is changed without the agreement of both parties, this indicates that a contract breach might have occurred. But in this case, both parties are agreed. Adam fails to fulfill its promise as per the provision of the contract. Contract modification shall be made following the signing of a contract, but the contract shall be amended by one party with the other party's permission or without it. The result of the contract change is that a new contract was legally concluded since when the old contract was signed, it no longer reflected the parties' intentions. After it has been signed, it is not unlawful to change a contract. However, it must be substantially amended to indicate the modification must be made with mutual consent of both parties if a significant component of the contract is revised.
Mary owns a small cattle farm with a fenced in pasture. Her neighbor, Stephen, notices that there is a break in Mary’s fence large enough for her cattle to push through. Without consulting with or telling Mary, Stephen repairs the break. Upon learning of the repair, Mary is grateful, and expresses her thanks to Stephen. However, Stephen is expecting to be paid for the repair.
What is Mary’s best argument that she is not liable to Stephen for the repair?
Contract generating mutual responsibilities that are legally enforceable between private parties. For an agreement to become a legally enforceable agreement, the fundamental elements are: mutual consent represented by a legitimate offer and acceptance; appropriate compensation, capability, and legality. Marry might argue that he does not have Stephen any performance duties since before fixing the fence, Stephen did not contact her. There was not any contract between them, and there is no mutual consent between them. So, Marry is not liable to pay Stephen for the repair. She is not bound to any written or oral contract. Similarly, marry is not supported by law to pay Stephen.
What is Stephen’s best argument that Mary is liable to Stephen?
Stephen can argue that he repairs the break. Contracts occur when there is a responsibility since one of the parties commits. A promise must be exchanged for appropriate compensation to be legally binding as a contract. However, certain commitments not deemed contracts can be implemented to a limited extent under specific conditions. Suppose a party has made reasonable reliance on the insurances/promises of the other party to its detriment. In that case, the Court may apply Promissory Estoppel's fair doctrine to award the non-breaching party Reliance damages to compensate the party against the amount suffered by reasonable confidence in the agreement.
Sharon has been promoted to chief executive officer of her company and now needs an apartment suitable for elegant entertaining. After carefully inspecting a condominium apartment, Sharon asks Tamara, the seller, if the building is quiet. Sharon emphasized the importance of a quiet environment since she suffers from horrible migraine headaches that are triggered by exposure to loud noise. Tamara makes the following three claims about the apartment:
The unit is very quiet, since the condominium’s bylaws (internal rules) established a noise curfew (cutoff) of 10 PM.
The rooftop patio is a very elegant venue and the perfect place to entertain
The neighbors are friendly and host an annual holiday party
Sharon bought the apartment. However, soon after she moved in, Sharon learned that the building had no formal rules regarding noise. Her next-door neighbors play loud music late into the night. She did not find the rooftop patio elegant, and its furnishings are, in no way, of a high-end quality. In addition, the neighbors are not friendly and do not host an annual holiday party.
Sharon sought to rescind the purchase of the apartment based on fraudulent misrepresentation. May she do so? Explain fully the legal basis of your decision and discuss fully all three pieces of information lettered a, b, and c above.
Sharon wants to rescind the contract- i.e., return of the purchased apartment which Tamara sold. In this case, the seller makes false claims, even after knowing her requirements, in certain. False misrepresentation is a lie used to get someone to accept that it damages them. It is under contract law the most severe form of false statement. Misrepresentation is a lie that leads to financial losses for a party. It should not be the only incentive, but the buyer must have relied on the statement to make a claim. The buyer may seek compensation from the sale depending on whether the seller has answered the questions honestly, carelessly, or fraudulently in the Property Information Forms incorrectly. The purchaser may, under certain situations, withdraw from the contract. This indicates that the purchaser has the right to return his money to the vendor. This is not very often, and the Court will typically grant compensation. The measurement of harm to a buyer is normally usually based on a 'value decline' or the difference between the payment by the buyer on the property and what the buyers paid for it. In correcting the problem, this may not always reflect the true cost to the customer. Additional damages may nonetheless be given in some instances to cover other costs spent. In this case, Sharon has the right to return his money to Tamara. All claims made by Tamara are false. Sharon can withdraw from the contract. Tamara should answer questions as honestly and fully as possible.
On May 4, Ms. Melody, who owns and runs a guitar store, received this letter by USPS mail, dated May 1, from Mr. Harmony, who distributes guitars: “I will sell you 25 Fender Stratocaster guitars for the total price of $12,500, payment and delivery on June 15. Please note that this is a firm offer until June 1. (signed) Mr. Harmony”.
On May 20, Ms. Melody received a second letter from Mr. Harmony that states: “With apologies, I must hereby withdraw my previous offer to sell you the Fender Stratocaster guitars. (signed) Mr. Harmony”.
On May 31, Ms. Melody sent the following letter to Mr. Harmony: “Deal! I accept your May 1 offer regarding the Gibson Q5 guitars”. Unfortunately, there was a delay in the postal service’s delivery of this letter, and it was not received at Mr. Harmony’s place of business until June 5.
On June 4, Mr. Harmony’s wife telephoned Ms. Melody and told Ms. Melody that Mr. Harmony died suddenly on June 2 and that she (Mr. Harmony’s widow and sole beneficiary) had sold to a third-party Mr. Harmony’s business and the entire inventory of guitars.
On June 15, Ms. Melody commenced an action against Mr. Harmony’s estate to recover damages for breach of contract.
Judgment for whom? Explain fully.
Judgment for Ms. Melody so that she can cover the losses from the estate of the Mr. Harmony. Most contracts end when their contractual duties have been performed, however it is fairly unusual for one side to fail to fully satisfy its contractual agreement termination. Contractual infringement is one of the most typical causes for bringing contractual issues to court. A violation happens when a party fails to fulfil a contractual commitment within the terms of the agreement (or a reasonable time if there is none called for by the agreement). If there is a material breach, the opposite party may cease its performance. If the infringement, on the other hand, has been substantially carried out by a party pursuant to the Agreement and committed only a minor or no material infringement, the other party shall, when applicable, perform and may subsequently sue for the damages caused by the violation or incur damages from payment thereof.
A court shall consider a number of factors to determine if a substantive breach occurs, including:
To what extent the person injured is derived from the benefit he reasonably expected to receive;
To what extent the injured person can sufficiently be compensated for the benefit of which he or she will be deprived;
The likelihood that the party failing to perform can or will be able to cure his failure, taking account of all the circumstances including any reasonable assurances;
The extent to which the behavior of the party failing to perform comports with standards of good faith and fair dealing.
Damage is utilized to reinstate the claimant if the conditions of the contract had been fulfilled as promised. Ms. Melody must prove a loss due to the violation and compensation is needed for this loss.
Harry Potter secretly played violin the whole time he was at Hogwarts, and by the time he graduated, he became very good at it. When Professor Dumbledore heard him play recently, he determined to help Harry advance his career as a violinist. Harry told Professor Dumbledore that to get his playing to the next level, he needed to get some training from a world-class violinist to improve his interpretation and style. Harry contacted a celebrated concert violinist, Yuko Wong, but did not hire her because he couldn’t afford Yuko’s fee of $100 an hour. Professor Dumbledore told him: “Nonsense! Nothing but the best for you, my dear student. I will pay for your lessons and will send you a check for $10,000 tomorrow. That will be enough for 100 lessons.” Harry thanked him and said, “Professor Dumbledore, when I become the most famous violinist in the world, I’ll always save you the best seat in the house!” To this, Professor Dumbledore replied, “That would be wonderful! I accept and will hold you to it!”.
Assuming capacity is not an issue here, do Harry and Professor Dumbledore have a valid contract? Please explain.
No, the case doesn’t have a valid contract. It involves a Gratuitous Promise. When someone make a promise to either outside or within the known one. Professor Dumbledore and Harry don’t have a valid contract. It is just a promise from both parties. A violation does not mean that the party will accept these violations in future, because there is no evidence to show that the injured party explicitly takes into account the impact of accepting these violations.
As a free promise has no regard, in most circumstances the party making the promise will not have any obligations. If a party makes the undertaking to another party, both within and without the contract, and that party does not receive anything in return if this commitment is placed on the Party but (without regard), the undertaking is declared free. A major event in which the grantor of a free promise must fulfil that promise is in the context of a contract in which another party breaks a contract term on the basis of the promise. It will examine a number of situations in the field of fair treatment where courts forced one party to a contract to fulfil the conditions of a free promise. That is fair: if one party breaches a contract term based on the promise of another party, it would be unfair to enrich the promising party. The courts are therefore preventing the promising party from implementing the severe contract conditions. An interesting difference is whether the usual passive acceptance of a breach of a contractual condition represents an open promise that future breaches of the same term will be accepted.
Dambaeva, I. V. (2020). Termination of social employment contract. Eurasian Law Journal, 4(143), 174–176. https://doi.org/10.46320/2073-4506-2020-4-143-174-176
Kichigin, S. V. (2020). Termination of Validity and Termination of Performance of an Employment Contract. Actual Problems of Russian Law, 15(4), 91–98. https://doi.org/10.17803/1994-1471.2020.113.4.091-098
Šírová, L. (2016). Misrepresentation Under English Contract Law and its Comparison to Slovak Contract Law. International and Comparative Law Review, 16(2), 197–208. https://doi.org/10.1515/iclr-2016-0024