SHORT ANSWER QUESTIONS

11. Willie Wonka places an order with Nuts To You for 1,000 pounds of Grade A almonds at $1.25/pound, to be delivered in five days to his chocolate factory. A clause in the boilerplate of the order form states that Willie Wonka will be entitled to recover his reasonable attorney’s fees should he have to sue over a problem with the contract.

(A) Nuts To You sends an acknowledgement form in which it states that it will sell Willie Wonka 1,000 pounds of Grade A almonds, to be delivered in five days to his chocolate factory. In the boilerplate language in the acknowledgement form, Nuts states that each party will be responsible for its own attorney’s fees should a suit arise from the contract. Is there a contract? If so, what does the contract say about who will pay Willie’s attorney’s fees if he has to sue? _________________

(B) Same as part (A), except now assume that the Nuts To You acknowledgement form, instead of mentioning attorney’s fees, changes the grade of almonds to Grade B at a $1.25/ pound price. (Grade B almonds are perceived in the marketplace as being significantly less good-tasting than Grade A ones, and typically sell for about 10% less.) Is there a contract? If so, what does the contract say about the Grade? _________________

12.On Feb. 10, Chris Columbus offers to sell his powerboat, the Santa Maria, to Leif Ericson, and tells Leif that Leif has until March 1 to decide. On Feb. 20, before Leif has responded, Chris sells the boat to Isabella instead. On Feb. 25, Leif overhears of the sale from two strangers at the local tavern, Newe Worlde. On Feb. 26, Leif sends an email to Chris, “I accept your offer, here’s my credit card number.” Is there a contract between Leif and Chris? _________________

13. Washington decides he wants his new house at 1500 Pennsylvania Ave. painted barn red. On June 20, he send a letter to Potomac House Painters that says, “I’d like you to paint my new house. If you’re willing to do the work for $1500, just show up and start painting by July 4. No written contract necessary.”

(A) Assume that on June 30, Potomac buys (expressly for this job) the requisite red paint, at a cost to it of $500. On July 3, Washington decides he likes the mansion in its present color (white), and sends Potomac a telegram, “I revoke my offer.” Potomac would have made a profit of $750 on the job (it would have had to spend $250 more in labor charges to finish the job). The red paint is valueless to Potomac if the paint won’t be used on this job. Is there a contract in force, and if so, how much may Potomac recover? _______________

(B) Same basic facts. Now however, assume that Washington waits until Potomac arrives at the house and spends one day sanding it (a necessary part of the painting job); Washington then says, “I revoke.” Is there a contract in force, and if so, how much may Potomac recover? _________________

14. Jessica Rabbit’s Microbrewery sends the following letter to Toontown Tavern: “We hereby offer to sell you 50 kegs of beer at a price of $40 per keg. This offer shall remain open for 2 months from the date of receipt.” Toontown does not give or promise anything of value in return for this offer. After six weeks, Jessica Rabbit’s Microbrewery sends another letter that says, “As we have not heard from you in all this time, we revoke our offer.” A week later, Toontown Tavern faxes a letter to the Microbrewery saying, “We accept your offer of 50 kegs at $40 per keg.” Is there a contract? _________________