Contracts Keyed to Frierback
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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. Assume for the purposes of this question that Katie neither knew nor had reason to know of the mistake. Consequently, the modification where Clothes agreed to the pay the additional $15,000 becomes the subject of dispute. If Clothes try to argue that there is an unenforceable contract, what result?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.
Browley believed that his success in business was due to his willingness to “seize the moment” when a business opportunity presented itself. He was taking a breakfast meeting with representatives of several financial institutions he was wooing to underwrite a hostile takeover attempt when he overheard Ilya, sitting at the next table, tell his (Ilya’s) companion, “I’ve got to get rid of the Upland Street warehouse; the district’s been rezoned to C-1 and the property taxes are killing me!” Browley excused himself from his table and went to Ilya’s table. He told Ilya he was familiar with the Upland Street property and offered him $100,000 for it, “on the spot.” When Ilya hesitated, Browley wrote him a personal check for $5,000 and said, “This will show I mean business; you give me a deed here at breakfast tomorrow, I’ll have the rest in cash. Let’s shake on the deal.” Ilya shook Browley’s hand and said, “O.K., it’s a deal.” Browley gave Ilya the $5,000 check and returned to the bankers at his own table.
The next morning Browley was at the restaurant with a cashier’s check for $95,000. When Ilya appeared, Browley offered him the check and asked for the deed. Although Ilya had prepared and executed a warranty deed in Browley’s favor, instead of delivering the deed, Ilya returned Browley’s $5,000 personal check, stating that he had checked around and gotten another offer for the warehouse at a price of $150,000. Browley refused to accept return of his personal check and brought an appropriate action against Ilya for specific performance of the warehouse sale transaction, what result?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.
Tim was looking to buy a new computer, and emailed back and forth extensively with Delo Corp. about their various models and options. Tim finally agreed, in email, to pay $1,200 for a particular desktop, and requested that it contained an extended on site warranty. Delo Corp agreed to this in the email.
Assume for this question only that Delo Corp then claimed there was no contract. Will they be successful?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.