Written Assignment - Contracts


(from Restatement of the Law: Contracts, 2d

  1. A says to B, "I will employ you for a year at a salary of $5,000 if I go into business." Is this a valid promise? (11, 3)


Yes. An offer with a condition precedent ("if I go into business"). Whether or not A goes into business will depend on
econonomic and/or other factors unknown (fortuitous) to him at this time.

  1. A owes B $50. In exchange for A's payment of the debt B makes a promise. Is there consideration? (53,1)


No. Pre-existing duty. A already owes the money and has an obligation to repay.
 

  1. A offers to sell B goods shipped from Bombay ex steamer "Peerless". B accepts. There are two steamers of the name "Peerless" sailing from Bombay at materially different times. Both parties intend the same Peerless. Is there a contract (K)? (60,1)

Yes. They are talking about the same ship. No problem here of referential indeterminacy.
 
 

  1. The facts being otherwise as stated above, but A means Peerless No. 1 and B means Peerless No. 2. Neither A nor B knows nor has reason to know that they mean different ships. Is there a K? (60,2)

No. This is the real "Peerless"case you read about.
 
 

  1. The facts being otherwise as stated above, but A knows that B means Peerless No. 2 and B does not know that there are two ships named Peerless. Is there a K? (60,3).


Yes, because A knows B means P2; therefore the court will find that there is a K for Peerless 2.
 
 

  1. A invites his friend B to dinner in his home, and B accepts. Is there a K? (64,5)


No. A gratuitous promise (gift)
 

  1. The facts being otherwise as stated above, but A promised B a fee for attending and entertaining the other guests, and B did so. Was there a K? (64,5)


Yes. In the normal course of events B would not be expected to entertain guests.
 
 

  1. A sends B an offer through the mail to sell A's horse for $500. While this offer is in the mail, B, in ignorance thereof, mails to A an offer to pay $500 for the horse. Is there a K? (69,4)


No. There are 2 offers here but no acceptance as yet (even though coincidentally both offers are identical).
 

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  1. A writes B, "I am eager to sell my house, I would consider $20,000 for it." B promptly answers, "I will buy your house for $20,000 cash." Is there a K? (77,4)


No. A has not made an offer to B. The words "I would consider" are not sufficiently strong to constitute an offer. However, B has made a bona fide offer to A.
 

  1. A publishes the following offer: "I will pay $50 for the return of my diamond bracelet lost yesterday on State Street." B sees this advertisement and at once sends a letter to A, saying "I accept your offer and will search for this bracelet." Is this a valid acceptance? (90,3)


No. A does not desire a return promise. For A the only acceptable acceptance of his offer is  the actual delivery of the bracelet (a unilateral agreement).
 
 

  1. A makes an offer to B and adds: "This offer will remain open for a week." B rejects the offer the following day, but later in the week purports to accept it. Is there a K? (105,1)


No. B has rejected the original offer; his subsequent so-called acceptance however could be construed as a new offer that he is now making to A.
 
 

  1. A offers B to sell him a parcel of land for $5,000, stating that the offer will remain open for thirty days. B replies, "Won't you take less?" A answers, "No." Has B made a counteroffer? (107,2)


No. B has made only an inquiry (i.e. a question is not an offer).  A's original offer stands.
 

 

  1. A receives a gift from B of a book worth $10. Subsequently A promises to pay B the value of the book. Is there consideration?(2)


No. Past considertion.
 
 

  1. A desires to make a binding promise to give $1000 to his son B. Being advised that a gratuitous promise is not binding, A offers to buy from B for $1000 a book worth less than $1. B accepts the offer. Is there consideration for A's promise? (5)

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No. Sham consideration. There is too much discrepancy between the real value of the book and A's offer of $1.
   

 

  1. A promises B to pay $1,000 to B, a bank, in exchange for the delivery of a car by C to A's son D. Is there consideration for A's promise? (176,18)

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Yes. The delivery of the car by C (the car dealer) to D (A's son) is consideration for A's promise to pay B (the bank) $1,000..
   

 

  1. A and B are engaged to be married. In an antenuptial agreement C, A's father, promises B that C will pay an annuity to A, and A and B marry in reliance on the promise. Is the marriage consideration for C's promise? (182,9)


Yes. Although engaged, A and B are still free to break up. The marriage hasn't happened yet.
 
 

  1. A promises to sell and B to buy goods if A's employees do not strike before the time for delivery. Is there consideration? (193,4)


Yes. The possible strike is a condition precedent on a valid exchange (promises to buy and sell).
 
 

  1. A owes B $5. B promises to give A a book if A will pay the $5 and $1 in addition. A pays the $6. Is B's promise binding? What if A had paid $5? (205,3)


B's promise is not binding for $5 (pre-existing duty), but is binding for $6 (the extra dollar is ‘fresh’ consideration).

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