Formation and Breach of Contract Incidents
You must use “IRAC” acronym to answer:
I =the legal issue – burglary, contracts, specifically, agreement etc.
R = the rule of law that applies – e.g. burglary
A =application of the facts to the rule, or call it analysis, your analysis of the problem
C =conclusion – result. In other words, can he be charged with burglary? Is there a
K? (remember the letter K is used for the word “contract.” If you are going to law
school, you will learn that right away.)
* Some schools today, use FIRAC – where the letter “F” stands for the facts
INSTRUCTIONS: This writing assignment must be typed. It must be turned in on time.
You may use your text to answer the questions. Your answer should thoroughly discuss the law and any applicable exceptions. Please do NOT discuss every rule you have learned that even remotely applies to the facts. Study the problem, determine what the issues are and what rules apply. Make sure you answer the question(s) asked and provide support for your conclusions in the form of analysis. Submit your responses via Blackboard per the instructions there. Try to keep your answers short BUT complete.
1. Garvey owned four speedboats named Porpoise, Priscilla, Providence, and Prudence. On April 2, Garvey made written offers to sell the four boats in the
order named for $4,200 each to Caldwell, Meens, Smith, and Braxton, respectively, allowing ten days for acceptance. For each scenario, discuss whether a contract formed, why or why not? Remember to back up your statements with rules and analysis.
(a) Five days later, Caldwell received notice from Garvey that he had contracted to sell Porpoise to Montgomery. The next day, April 8, Caldwell notified Garvey that he accepted Garvey’s offer.
(b) On the third day, April 5, Meens mailed a rejection to Garvey which reached Garvey on the morning of the fifth day. But at 10:00 A.M. on the fourth day, Meens sent an acceptance by telegram to Garvey, who received it at noon on the same day.
(c) Smith, on April 3, replied that she was interested in buying Providence but declared the price asked appeared slightly excessive and wondered if, perhaps,
Garvey would be willing to sell the boat for $3,900. Five days later, having received no reply from Garvey, Smith, by letter, accepted Garvey’s offer and enclosed a certified check for $4,200.
(d) Braxton was accidentally killed in an automobile accident on April 9. The following day, the executor of Braxton’s estate mailed an acceptance of Garvey’s offer to Garvey.
2. Alpha Rolling Mill Corporation, by letter dated June 8, offered to sell Brooklyn Railroad Company 2,000 to 5,000 tons of fifty-pound iron rails upon certain specified terms, adding that, if the offer was accepted, Alpha Corporation would expect to be notified prior to June 20. Brooklyn Company, on June 16, by telegram, referring to Alpha Corporation’s offer of June 8,
directed Alpha Corporation to enter an order for 1,200 tons of fifty-pound iron rails on the terms specified. The same day, June 16, Brooklyn Company, by
October 7, 2013 5:05 PM letter to Alpha Corporation, confirmed the telegram. On June 18, Alpha
Corporation, by telegram, declined to fill the order. Brooklyn Company, on June 19, telegraphed Alpha Corporation: “Please enter an order for 2,000 tons
rails as per your letter of the eighth. Please forward written contract. Reply.” In reply to Brooklyn Company’s repeated inquiries regarding whether the
order for 2,000 tons of rails had been entered, Alpha denied the existence of any contract between Brooklyn Company and itself. Thereafter, Brooklyn Company sued Alpha Corporation for breach of contract. Decision?
3. On April 14, 1994, Bill Shaw, a retired policeman, offered to sell Thurgood his 1965 Mustang convertible for $1,000. Thurgood responded, “That’s a ridiculous price for a thirty year old car – forget it!” Later, Thurgood told a friend about the offer, and the friend tells him the car is worth at least $3,500. Thurgood immediately telephones Shaw and says, “I’ve reconsidered and I accept your offer.” Shaw says, “Forget it. The price is now $3,500.” If Thurgood sues Shaw for breach of contract, will he be successful?
Answer Preview-Formation and Breach of Contract Incidents
