Contracts Keyed to Frierback
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Samantha was on her way to Simmons University to study at the library when she came upon a bunny in the park. The bunny had a pink collar that read “Binkie” but the address to report the bunny to “if found” had rubbed off. Because Samantha loved bunnies, she coaxed the bunny to go back to her dorm with her and placed an ad in the paper, under “Lost and Found”, to try and find the bunny’s owner. Soon thereafter, Alex, the owner of Binkie the Bunny, contacted Samantha and arranged to come see Binkie to see if it was in fact his precious Binkie. After all, Alex thought, there could be hundreds of bunnies named Binkie running around town.
The next day, Alex came to Samantha’s dorm and saw that the bunny was in fact his Binkie. He was so overwhelmed with joy at finding Binkie that he offered Samantha a $200 reward, although he told Samantha that he would not be able to pay her the reward until February 14, when he would get his next paycheck. Samantha thanked Alex but told him that she was happy that he and Binkie were reunited, and she did not want any money from him.
By February 14, however, Samantha had a change of heart. She had spotted a really nice bag that she wanted to give herself for Valentine’s Day. She decided that she could use the extra money, and so she called Alex and said that she would like the reward after all. Alex refused to pay.
If Samantha sues Alex for breach of contract, what will she recover?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.
Katie is a purchasing agent for Clothes [a clothing store]. She negotiated a contract with Bikini Co. to purchase a specific number of Bikinis at $75,000. When Tania, president of Clothes, learned of the contract, she called Katie into her office and said she was so pleased with her deal that she would be promoted to manager of Clothes’ NY store. One week later, on 12/3/97, Katie got a call from Stanley, VP of Bikini Co., who said that Bikini’s sales rep made an error in calculating the contract price, and as a result, Stanley said that unless Clothes agreed to pay an additional $15,000, Bikini Co. would not deliver the garments. Katie told Tania of the mistake and Tania reluctantly authorized Katie to make the payment of the additional sum. Katie orally informed Bikini Co. of this.
Q. Regarding the promise of promotion, is this enforceable or unenforceable?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.
Dried Fruits Galore (DFG) manufactured Denny’s Prune Preserves and distributed them to supermarkets and grocery stores in the Metropolis area. He entered into a contract with Martin, a fruit grower, which provided that DFG would purchase and Martin would supply all of DFG’s requirements for grade B prunes for the next five years, at a specified price per ton reflecting the most recent market price. The contract stated, in part, that DFG “need not order any specified amount of prunes, but will notify Martin of his yearly requirements no later than August 15 of each year.” DFG had been in business for seven years, and his gross sales had grown steadily at about ten percent per year. The previous year, DFG had purchased 90 tons of prunes from other suppliers.
Q. Assume for the purposes of this question only that before Dried Fruits Galore and Martin exchange any prunes or money under their contract, prune blight strikes the major growing areas, including Martin’s orchards, causing production to go down and the price of prunes to triple. Martin harvests about 120 tons of prunes and decides to sell them on the open market rather than providing 100 tons at the contract price to DFG as the latter demands. May Martin rescind the agreement with DFG on the grounds that it was not supported by consideration?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.