1) Acme Equipment offers to sell a dough-cutting machine to Big Bagels Inc. The offer states: “This offer expires Friday noon.” Acme is based in Boca Raton, Florida. Big Bagels is based in Los Angeles, California. On Friday, at 10:00 am Eastern time (Florida time), the sales manager for Acme calls the president of Biscuits and says, “Well, I guess you don’t want it. Contract is terminated.” What are the elements of a valid offer? Was this a valid offer, and why? Should this contract be terminated, and why?
2) Yellow Heating Inc. offers to ship furnaces to Zippy Inc. for $4,500 cash. Zippy’s CEO e-mails back, “Great, I accept, as long as we can make that payable in three weeks, not tomorrow.” What are the elements of a valid acceptance? Was this a valid acceptance and why?
3) On Monday morning, Andy and Brian enter an oral, unwritten contract for the sale of five acres of land in Delray Beach, Florida, at “$10,000 per acre.” On Tuesday morning, Andy demands that Brian pay him “$11,000 per acre” for the land. Brian refuses. Andy sues. Who should win, and why? In your answer, explain written/oral and implied/express contracts.
4) Abby is a brilliant 16-year-old high school student who has invented “The Spritzer,” a device to keep vegetables fresh in the refrigerator. Abby goes to TGIThursdays restaurant, where she meets up with Brianna, the 23-year-old sister of Abby’s best friend. They sit down for a bite to eat. Brianna has four vodka-and-tonics, Abby has a Coca-Cola. Brianna and Abby write a contract on a sheet of paper, and sign it, stating that Brianna promises to pay Abby $100,000 for all rights in The Spritzer. Is this a valid contract? What are the reasons why this might not be a valid contract?
Sample Solution
