ICE8-1_ContractLawCases
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Durham College *
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Law
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Feb 20, 2024
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docx
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ICE 8-1
CONTRACT LAW CASES
Names: -
KUSH PATEL – 100895818
ROSHAN ATHALYE – 100898286
PARTH BHIKADIYA- 100900606
VEDANG BHATT - 100885634
Instructions: Carefully read the following cases studies. Analyze each case based on what you learned in chapter 15 (Legal and Ethics). Complete your answers and submit through DC Connect.
Case 1:
A car is advertised for sale in the driveway of a home. Written on the windshield it says $1,000.00 Cash. A passerby sees the sign and knocks on the front door of the house. After some
discussion on the condition of the motor and a visible inspection of the tires and interior he feels that this will be an ideal starter vehicle for his daughter. A deal is negotiated at the reduced price of $800.00. The purchaser asks permission to go to the bank and return in two hours or less since he wants the $800.00 in cash. While the man is off to the bank another buyer shows up and agrees to buy the car for the full price and he has the cash on hand to complete the purchase. The seller agrees very pleased that he got his full price for the vehicle.
The original buyer returns in an hour and a half to find the car has been sold to someone else. What are the first buyer’s rights in this case?
ANSWER: - • In this case, the initial buyer might have interests based on contract formation. A contractual agreement may exist if the seller approved the agreed price of eighty thousand dollars before the second buyer arrived. • The departure of the initial buyer to the bank may be seen as a temporary abandonment of the offer. If the buyer is aware of this and nonetheless sold the automobile to the second bidder within the agreed-upon deadline, this might be considered a breach on a binding agreement.
• The original buyer should collect documentation from the talks and seek legal counsel to examine the possibility of seeking remedies such as specific performance or damages.
Case 2:
A school board contacts Furniture Manufacturing Inc. and presents them with exact specifications for special, space saving, stackable chairs they can use in the gym when there is a school assembly. The manufacturer looks over the drawings and specifications and several days later contacts the school board with a price that seems to fit the school board’s budget. They agree on the price and agree to accept delivery within a reasonable time for manufacture within four months.
1.
Scenario one: When the chairs are delivered, they immediately discover that the chairs topple over when someone takes a seat. The school board refused to pay.
ANSWER: -
Problem: The chairs provided do not satisfy the agreed-upon requirements and represent a safety concern.
•
Legal Basis: Breach of contract; implied assurance of merchantability.
•
Remedy: The school board may deny payment, demand replacement chairs that meet requirements, and seek reimbursement for any losses or inconvenience caused by the faulty chairs.
•
Evidence: A good legal case requires documented specifications, agreement, and
evidence of faults.
2.
Scenario two: Two: Furniture Manufacturing Inc. cannot make delivery within 4 months and asks for a 3-month extension.
ANSWER: - • Problem: Furniture Manufacturing Inc. will miss the agreed-upon four-month delivery deadline.
• Communication and Good Faith: It improves Furniture Manufacturing Inc.'s argument if they quickly informed the school board of the delay and requested an extension in good faith.
• Contractual Terms: The initial contract called for delivery within four months. The parties must determine if the contract allows for changes or extensions by mutual permission.
• Contract Amendment and Negotiation: The school board and Furniture Manufacturing Inc. should negotiate the extension conditions, including potential compensation for the delay. To avoid future problems, a formal agreement should be formed and documented.
Case 3: The Mark Anthony Pet Shop writes to Cleopatra, stating, “Dear Cleo: A once in a lifetime opportunity for you. We just received a shipment of asps. They are healthy and friendly, love kids, and make great watch snakes. As a preferred customer you can receive one for $50. The price includes fang removal. Please respond by fax only.” Cleo sends a letter of acceptance by regular mail because the UCC allows for
acceptance by “any reasonable means.” Is Cleo’s acceptance valid?
ANSWER: - • Under the Uniform Commercial Code (UCC), Cleo's acceptance by normal mail may be regarded legitimate in this circumstance. Even though the offer specified demanded fax answers, the UCC enables acceptance by "any reasonable means" unless the offeror clearly states otherwise.
• Cleo's choice of ordinary mail may be seen as an acceptable mode of communication, particularly if the offer did not expressly limit other ways. However,
the acceptance's validity may be affected by factors such as the offeror's purpose, industry norms, and the entire context of the communication.
• It is important to note that legal interpretation is subject to change, as are the aspects of the offer and applicable. • Jurisdiction would be critical. Cleo should be aware that using ordinary mail may cause some doubt about
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