Contracts Keyed to Frierback
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A rare coin dealer cabled an investor on April 1, “We will sell you up to fifty 1885 gold U.S. twenty-dollar pieces at $500 each. Specifics have been sent by U.S. Mail.” The letter, containing the legal details including postage, insurance, grantees, and a clause stating, “the offer will be held open for one hundred days,” was received by the investor on April 4. On April 3, the investor sent a cable to the coin dealer that said, “I accept your offer for five gold coins.” Three hours after the investor sent the cable, a riot set off a panic that caused the price of gold to immediately double.
Assume that on April 4 the coin dealer sent a cable to the investor, “Confirm your order of five coins, must retract offer for other coins.” The investor responded, “Pursuant to the offer you promised to keep open, I purchase the remaining 45 coins at $500 each.” The coin dealer refused to send the coins.
If the investor asserts an action based on breach of contract against the coin dealer, should the investor succeed?CorrectIncorrect
In an attempt to induce her niece to improve her grades, an aunt told her niece that she would give her $50 for every “A” she earned in law school. Inspired by the opportunity to earn extra spending money, the niece studied like never before and ended up earning three “A’s” the following semester. Upon contacting her aunt with the news, the niece learned that her aunt was “only kidding” about paying her for every “A” earned in law school.
If the aunt’s offer to her niece was held to be valid, it would be an offer for:CorrectIncorrect
A pop musician of modest fame offered to sell his first guitar, the one he played as a teenager before he became famous, to a devoted fan for $2,000. The fan paid the musician $50 to keep the offer open for 60 days. Thirty days later, the musician suddenly died. The administrator of his estate found a copy of the agreement and informed the fan that the offer was revoked. Nevertheless, after the value of the musician’s paraphernalia skyrocketed due to his death, the fan contacted the administrator to proceed with the sale for $2,000 just before the 60-day period expired. At that time the value of the guitar was estimated to be $50,000. The administrator refused to sell the guitar to the fan for $2,000, so the fan sued the estate for breach of contract
Is the court likely to rule in the fan’s favor?CorrectIncorrect
On October 1, a siding installer sent a letter to a builder stating, “I am offering to install siding on one or up to all of the 12 houses that you are currently building. This offer remains open until November l.” On October 13, the builder e-mailed the installer, “We accept your offer with respect to the house on Main Street.” There was only one house on Main Street that the builder was constructing, so the installer promptly began the siding installation. On October 25, the installer telephoned the builder to inform him that she had accepted other work and so would not be able to install siding on the builder’s other houses. The builder thereafter faxed the installer, “We would like you to do the siding on the other houses.”
In an action by the builder against the installer for breach of contract, the builder will probably:CorrectIncorrect
A clam bar restaurant was the only restaurant of its kind in the town. The restaurant’s owner, who had tired after forty years of clam baking, decided to sell the restaurant. She contacted a broker who brought the restaurant to his client’s attention. When the restaurant’s owner met the client, and saw that the client was serious about buying the restaurant, the restaurant owner made the following offer on October 25: “I hereby offer the clam bar restaurant to the client for $1,000,000 to be received on December 15.” On November 15, the client wired $1,000,000 to the restaurant owner’s account and mailed a certified letter stating her acceptance of the restaurant owner’s offer. On December 13, the restaurant owner told the client, “Forget our deal. There’s no way I can give up the restaurant.”
The restaurant owner’s statement:CorrectIncorrect