Contracts Keyed to Frierback
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A buyer and a seller had known each other for twenty years. The buyer heard through his neighbor that the seller was thinking of selling his lawn mower. The warranty on the buyer’s mower had recently expired, and the mower had expired as well. Since the buyer was in need of a mower he wrote a signed letter to the seller, dated March 1, that said: “If you deliver your lawn mower in working condition to my house by 6:00 p.m. on March 15, I will pay you $400. This offer is not subject to change or revocation.”
The seller wrote to the buyer on March 3 and told him, “I accept your offer, and will deliver the lawn mower before March 15.” The letter was properly addressed and posted on March 3, but did not arrive until March 14, two days after the buyer purchased a mower from a home goods store for $450.
The home goods store was also the seller’s friend. The home goods store owner bragged to the seller on March 13 that he had sold his used mower to the buyer at a very high price.
The seller brought the mower to the buyer’s house at 5:30 p.m. on March 15. The buyer was out, but the seller waited until the buyer arrived at 7:00 p.m. The buyer refused to pay for the mower.
If the seller asserts an action based on breach of contract against the buyer, the court should rule that the seller’s March 3 letterCorrectIncorrect
An owner personally owns a large company that manufactures commercial airplanes. A neighbor told the owner, “I convinced a friend of mine to buy three of your airplanes for his company.” The planes were indeed sold by the owner to the friend. The neighbor demanded a 1 percent commission, as is customarily given to airplane salesmen.
Which of the following arguments would support the owner’s refusal to pay the commission?CorrectIncorrect
On April 2nd, X offers sell 300 widgets to Y at $1 each. X states that she must get Y’s acceptance by April 5th. On April 3rd, Y mails his acceptance to X. On April 4th, X mails her revocation of the offer to Y, which is then received by Y on April 5th. Y receives X’s acceptance in the mail on April 6th. Has a valid contract been formed?CorrectIncorrect
A computer company sent a purchase order to a wholesaler for keyboards, stating, “Please ship 100,000 keyboards at the posted price.” Two days after receipt of the purchase order, the wholesaler shipped the keyboards and the computer company accepted. A week after delivery, the computer company received the wholesaler’s acknowledgement form, and it included a provision disclaiming any consequential damages. However, as luck would have it, after using the keyboards for two months, the computer company discovered a defect. This meant that the computer company had to recall 10,000 computers that had already been shipped, incurring a loss in profits of $40,000.
Assuming all appropriate defenses are raised, will the computer company succeed in recovering $40,000 in consequential damages?CorrectIncorrect