CHAPTER 3

CONSIDERATION

20. George Washington’s friend Benny Arnold tells him, “If you walk across the street with me now and go into the hardware store, I’ll buy you an axe.” Washington crosses the street and enters the store. Arnold reneges. Has Arnold breached a contract?

21. Lion Hart is walking through the woods when he steps on a thorn. He languishes in pain for hours, screaming. Furdley Naturelover walks by and sees Lion’s predicament. Acting as a good samaritan, without any expectation of payment, Furdley removes the thorn. Lion, immensely relieved, says, “Boy, am I grateful. I’m going to send you $1,000 a month as long as I live.” Is Lion’s promise supported by consideration?

23. The Trianon Bakery has a contract with Marie Antoinette to deliver 1,000 cakes for a Bastille Day Party Antoinette is conducting. Trianon fails to deliver, and Antoinette threatens to sue. Trianon says, “If you agree not to sue, I’ll give you a strand of priceless black pearls.” Antoinette agrees, and accepts the pearls. Both parties reasonably believe that Antoinette’s claim may be valid.

(A) Assume that Antoinette’s claim is in fact valid. Is Antoinette’s promise not to pursue her claim enforceable? _________________

(B) Now assume that Antoinette’s claim is invalid, because the jurisdiction just shortened the statute of limitation for food-related contracts to five days, and that period has already lapsed. Assume further that neither Antoinette nor Trianon knows about this change, and that their lack of knowledge is reasonable. Is Antoinette’s promise not to pursue her claim enforceable? _________________

24. The New World Cruise Company hires Christopher Columbus to perform a publicity stunt for them — Columbus promises to sail due West to discover America, in return for which New World promises to pay $5,000 on completion, plus a lifetime supply of dramamine.

(A) Just before Columbus is set to sail, he decides that the payment isn’t big enough, and refuses to go unless New World ups the ante. New World says, “OK, we’ll also name the capital of Ohio after you if you’re successful.” Columbus agrees, sails, discovers America, and collects his $5,000 + dramamine. New World refuses to name the capital after him. Under common-law principles, can Columbus enforce this capital-naming promise? ______________

(B) Same facts, but assume that the original agreement called for Columbus to leave Genoa on April 1. Assume further that when Columbus balked at starting the trip, New World said that it would name the Ohio capital after Columbus if he left on March 30 instead of April 1, and successfully completed his mission. Columbus leaves on March 30, completes the mission, and now wants to compel New World to honor the capital-naming promise. Is that promise enforceable? _________________

25. Charlie Tuna’s Fish Shack contracts to buy 100 pounds of fresh salmon over the next month at $3 a pound from Chicken of the Sea, a fresh fish wholesaler. After the contract is entered into, an unexpected freeze affects the salmon migration and makes it more difficult (and more expensive) for Chicken of the Sea to obtain the fish. Melissa Mermaid, president of Chicken of the Sea, calls Charlie and says, “We’ve got to talk. I’m going to lose money if I sell you the salmon at $3 a pound. Let’s make it $4 and we’ll still both come out ahead under the present market conditions. Agreed?” “Agreed.” One day later (at a time when Melissa hasn’t yet relied on the higher price in any way), Charlie says, “Sorry, I won’t pay the $4. We’ve got a contract at $3/pound; I’ll expect you to deliver.”

(A) Can Melissa enforce the modification to the contract? _________________

(B) If the contract was governed by the Restatement and not by the UCC, could Melissa enforce the modification? _________________

26. E.T. signs up for a long distance calling service with MCI (Make Calls Intergalactically). The calling plan says that calls made “between 7 and 11” will be 10 cents a minute, and calls made at all other times will be 15 cents a minute. E.T. gets a bill for $187 for one month’s calls, properly computed based on MCI’s assumption that “between 7 and 11” means between 7 and 11 p.m. E.T. thinks that “between 7 and 11” should also apply to the 7-11 a.m. period. (Assume that a court would probably find for MCI on this issue, but that E.T.’s reasoning is not crazy, and is done in good faith.) E.T. decides to pay only what he thinks he owes, and sends in a check for this lesser amount ($125). At the bottom of the check he writes, in neon green ink, “Paid in Full.” He sends the check, along with a note explaining why he believes this is all he owes, to MCI. MCI cashes the check but writes next to its endorsement, “Under Protest, and With Reservation of Rights.” MCI then sues E.T. for the $62 difference. Can MCI recover? _________________

27. Princess promises to sell her golden ball to Frog for $200 “unless I change my mind.” Can Frog enforce Princess’s promise? _________________

29. Hercules Manufacturing agrees to buy “all the thing-a-ma-bobs we need to produce our what-cha-ma-callits for the next year” from Zeus Metalworks. Zeus declines to deliver.

(A) Is Zeus bound? _________________

(B) Assume instead that the agreement was for Hercules to buy “all the thing-a-ma-bobs we order for the next year.” Is Zeus bound? _________________

30. Papa Bear agrees to sell, and Goldilocks to buy, four bushels of oats from the next season’s harvest. The agreement further provides that Papa Bear’s duty will be conditional on Papa’s planting of one more acre of oats than he planted the prior season. (Papa’s decision on whether to plant the extra acre will be based solely on his decision about how hard he wants to work.) Papa Bear in fact plants the extra acre, and tenders the resulting four bushels to Goldilocks. Is Goldilocks bound to accept and pay for them? _________________