Note: These questions are selected from among the “Quiz Yourself” questions in the full-length Contracts Emanuel Law Outline. We’ve kept the same question numbering here as in the Outline. Since some questions have been omitted here, there are gaps in the numbering.
OFFER AND ACCEPTANCE
1. Dorothy, owner of the Wizard of Odd-Sizes Shoe Store, is chatting with the Wicked Witch about her ruby slippers. Dorothy says, “I’m planning on selling my ruby slippers for $50.” Wicked Witch says, “Here’s my check. I accept.” Is there a contract? _________________
3. Einstein, intending his statement as a joke, tells Oppenheimer, “I’ll sell you my chemistry set for $50.” Oppenheimer, who has no idea that the set’s plutonium alone is worth many times the $50 price (or that Einstein is joking) says, “I accept.” Is there a contract? _________________
4. The Camelot Army/Navy Surplus Store advertises in a local circular, “Magic Swords, Excalibur model, for sale @ $24 ea.” Lance walks into the store, and says “I accept your ad; here’s my $24, give me 1 sword.” Is there a contract? _________________
5. Same basic facts as prior question. Now, however, assume instead that the ad reads: “Sale — Saturday only — Excalibur, the magic sword. Only one left. Was $500, now only $24. First come, first served.” Lance walks in and makes the same response as in the prior question. Is there a contract? _________________
8. Prince Charming finds a glass slipper on the sidewalk in front of his house. Unbeknownst to him, Cinderella has offered $1,000 as a reward for the slipper’s return. Charming goes from house to house, looking for the slipper’s owner. He finally finds Cinderella and returns the slipper to her. Is there a contract between Cinderella and Charming for payment of $1,000? _________________
9. Fern owns an antique shop, Junk Is Us. She makes a written offer to buy Euphrates Antique Wholesalers’ entire inventory of old string over a period of months. Fern’s offer promises that she’ll pay any invoice within 30 days, but says nothing about what happens if Fern doesn’t pay on time. Nor does the offer says anything specific about what kind of response by Euphrates will constitute an acceptance. Euphrates immediately sends a written response that says, “We accept your offer.” The response includes an extra clause providing for 8% interest (a rate typical in the industry) on overdue invoices. Fern makes no response to the overdue-invoices clause, receives the first shipment of string and places it into her inventory.
(A) Is there a contract? _________________
(B) If your answer to (A) is yes, is the overdue-invoices clause part of that contract? ___________