QUESTION 1
On September 5, 2009, Ralph offered to purchase a farm that Farms Associates had
listed for sale in 2008. At one point during the subsequent negotiations, Farms made a
counteroffer to Ralph, stating that the offer would be valid only until 5 P.M. on October
17th. Farms’
attorney sent the offer to Ralph’s attorney next day delivery via Federal Express. On
October 16th, Ralph sent his acceptance via certified mail to Farms’ real estate broker,
and Farms received it on October 19th. On October 16th, however, Farms had accepted
an offer from another party. Ralph sued Farms, claiming that his acceptance on October
16th was effective on the day that it was sent.
ASSINGMENT: How should the court decide? Cite all relevant law and legal theories
explaining fully.
QUESTION 2
Sue, a partner at Law Firm, told Art, a third-year law student, that he would get an
annual salary of $60,000 if he joined the firm. Art expressed interest but noted that
another firm had already promised him $62,000/year. The next day, Art received the
following letter from Sue:
“Law Firm hereby offers to hire you at $70,000/year plus bonuses, contingent on your
graduating from law school.
This offer will remain open for five days.” Art decided to seize this opportunity. He
immediately called the competing law firm to decline its $62,000/year offer. Later that
day, however, Sue reread the letter she had sent Art and noticed that what she had
dictated as “60,000” had been typed as “$70,000.” She tried to call Art at home but got
no answer. She then called the law school and left this message with the receptionist:
“Salary has typo. Offer revoked. Sue.” The receptionist placed the message in Art’s
student mailbox.
Art faxed an acceptance letter to Sue the next day, writing in relevant part, “I look
forward to starting work, though if at all possible I’d prefer to wait until after I take the
Bar Exam.” Art thereafter found Sue’s note in his student mailbox and called Sue, who
explained the error. Art insisted that he had accepted Law Firm’s offer and that Law
Firm was
bound to honor it. Sue denied Art’s claim, said that Law Firm was bound to pay him only
$60,000, and added that she found Art so insolent that she would not hire him at any
price.
Art subsequently graduated from law school and brought suit against Law Firm.
ASSIGNNMENT: Fully discuss the merits of Art’s claim citing all legal sources used.
QUESTION 3
Frank arranged with Lank, a retired Lecturer in history, to give Frank’s son, Simon, a
course of two one-hour lessons a week for ten weeks to prepare him for his final year
History exams. It was agreed that Frank would pay Lank $250 at the beginning of the
course and a further $750 at the end. After five lessons, Simon had a nervous
breakdown and was obviously not going to be able to take the examinations. Frank
therefore cancelled the rest of the course. Lank had spent a considerable amount of
time preparing the classes and had bought the latest edition of the set text books.
ASSIGNMENT:
1. Advise Lank legally citing all relevant sources and explaining fully in a memo,
and
2. Give your opinion on Florida’s statutes concerning any three (3) defenses to
contracts. What are they and do you agree with them as written? Why/why
not?
QUESTION 4
While on vacation, Bill saves the life of Fred’s wife Sally when she slips and falls off the
deck of an aquarium into a shark infested fool. Bill dives into the water and saves hers
life. Sally orally promises to leave Bill $10,000 in her will. However upon the death of
Sally she had no property except for the home she shared with her husband jointly).
After Sally dies, Fred signed and delivered to Bill the following instrument: “In
consideration of Bill saving my wife’s life and his agreement to bring no claims against
my estate based on her will, I hereby promise to pay Bill $10,000.” Upon Fred’s death,
Bill filed a claim for $10,000. Fred’s executor contested the claim on the ground that the
promise to pay was enforceable.
ASSIGNMENT: Who should the rule in favor of and under what legal theory? Fully
explain citing all sources utilized.
QUESTION 5
Being an expert in contract law, your paralegal firm group is helping to draft a new law in
Florida. You have been asked to consider expanding the category of “incapacity” to
include poverty and lack of education.
ASSIGNMENT: Discuss whether or not you think this is a good idea and why. Cite
sources relied upon.
QUESTION 6
Your group works as legislative counsel to Representative Henrietta HolyCow. She
recently suffered some inconvenience when a home renovation company breached its
promise to install marble counters in her kitchen. “They deliberately violated our
agreement, saying that Senator Lowlife had offered them twice as much money for the
same work!” fumed Henrietta.
“It seems to me that someone who suffers such a deliberate breach ought to get more
than simply expectation damages. Keeping one’s word is a virtue, after all, and breaking
it is a sort of fraud. I’m thus considering drafting legislation that will allow recovery of
punitive damages against anyone who deliberately breaches a contract for financial
gain.”
ASSIGNMENT: Prepare for Henrietta a memo with your analysis and
legal opinion of her proposed legislation. Explain punitive damages pertaining to
contracts, what they are and how they work, as well as your opinion as to her idea. Cite
cases and laws pertaining to same to back up your ideas and statements.
QUESTION 7
Howard and Molly married in 1983 and had a son, Sam. They divorced in 2004, at
which time Sam was 19 years old, living at home, and attending college full-time. The
divorce decree included a written property settlement agreement, which both parties
duly signed and which included an integration clause. While negotiating the contract,
Howard and Molly agreed that Howard should help Molly support Sam until he finally
“left the nest.” They captured that sentiment in the agreement by stipulating that Howard
would “pay to Molly, as trustee for Sam, $500/month for the support and education of
Sam, so long as Sam continues his college education.”
Howard duly made those monthly payments until 2006. At that time, Sam dropped out
of school, moved away from home, got married, and took a job to support his new wife
and child. Howard stopped making payments in support of Sam. In 2008, Sam resumed
his college studies on a part-time basis. He managed to fund them himself until 2010, at
which time he asked Molly for financial help.
Molly had not objected in 2005 when Howard had stopped supporting Sam. Nor had
she asked Howard to resume making payments in 2008, when Sam had returned to
school. In 2010, though, she told both Sam and Howard that she would resume her
obligations as trustee for Sam, supporting his education and receiving payments under
the divorce decree’s property settlement. Howard replied that he no longer felt obligated
to make those payments.
Notwithstanding Howard’s reply, Molly encouraged Sam to resume his education at her
expense. She raised money by hurriedly selling some rare family heirlooms. The rushed
nature of her sale caused her to get only $50,000 for the antiques, even though an
appraiser assured her
that she would get twice that amount if she could wait for the right buyer.
Sam has been back in school for six months, now. Molly has brought a breach of
contract suit against Howard, who has steadfastly refused to make support payments.
ASSIGNMENT: Discuss the rights and remedies of the parties under contract law. Cite
all relevant laws.
QUESTION 8
Maker manufactures printing presses. News, a publisher of a local newspaper, had
decided to purchase new presses. Rep, a representative of Maker, met with Boss, the
president of News, to describe the advantages of Maker’s new press. Rep also drew
rough plans of the alterations that would be required in the News pressroom to
accommodate the new presses, including additional floor space and new electrical
installations, and left the plans with Boss.
On December 1, Boss received a letter signed by Seller, a member of Maker’s sales
staff, offering to sell the required number of presses at a cost of $2.4 million. The offer
contained provisions relating to the delivery schedule, warranties, and payment terms,
but did not specify a particular mode of acceptance of the offer. Boss immediately
decided to accept the offer, and telephoned Seller’s office. Seller was out of town, and
Boss left the following message: “Looks good. I’m sold. Call me when you get back so
we can discuss details.”
Boss next telephoned Pressco and rejected an outstanding offer by Pressco to sell
presses to News similar to those offered by Maker. Using the rough plans drawn by
Rep, Boss also directed that work begin on the necessary pressroom renovations. By
December 4, a wall had been demolished in the pressroom and a contract had been
signed for the new electrical installations.
On December 5, the President of the United States announced a ban on imports of
foreign computerized heavy equipment. This removed from the American market a
foreign manufacturer that had been the only competitor of Maker and Pressco. That
afternoon, Boss received a telegram from Maker stating, “All outstanding offers are
withdrawn.” In a subsequent telephone conversation, Seller told Boss that Maker would
not deliver the presses for less than $2.9 million. A telephone call by Boss to Pressco
revealed that Pressco’s entire output had been sold to another buyer.
ASSIGNMENT: Fully and legally discuss the following:
1. Was Maker obligated to sell the presses to News for $2.4 million? Why/why not?
and
2. Assume Maker was so obligated. What are News’ rights and remedies against
Maker? Why/why not?
