Consider This
This is a bargained for exchange
What is consideration?
This occurs when a promisee acts upon a promisor’s statements of alleged facts, claims, or promises.
What is reliance?
The terms must be certain and definite, and it must be reasonably clear to the other person that acceptance will bind the parties.
What is an offer?
The acceptance of an offer must be a perfect reflection of the original offer.
What is the Mirror Image Rule?
Radley is walking down the hallway of Bay Area High School with his teammates, trying to work up the courage to ask Elizabeth to the dance. He sees Elizabeth, ditches his friends, and walks up to her locker. Radley just outright asks: “Will you go to the dance with me?” Elizabeth, taken aback, thinks for a moment and says, “Well, I don’t think I can because I have an 11pm curfew, and the dance ends at midnight.” Radley, determined to take Elizabeth, replied, “Oh, I can have you home by 11!” Elizabeth smiled and said, “Okay, then. I’ll see you at my house around 7:30.” Radley immediately says, “Great! See you then!”
(1) Rad’s first offer to go to the dance
(2) Elizabeth rejects because curfew
(3) Rad negotiates an 11pm drop-off
(4) Elizabeth offers a 7:30pm pick-up time
(5) Rad accepts
This is a promise to another person that is lacking in consideration
What is a gratuitous promise?
This is a principle that lets a promise made without consideration be enforceable to prevent injustice if the promisor should have reasonably expected the promisee to rely on the promise AND the promisee did rely on the promise to her detriment.
What is promiSAY estoppO? (promissory estoppel)
If it leaves nothing for negotiation and the terms are specific and definite.
When is an advertisement an offer?
What is definitiveness?
Daniel has worked as a baker for Emil’s Bakery for six months. One day, the owner says, “Daniel, you’ve done such great work for me these past six months, so I’m going to give you a raise!” Daniel is relieved because he does not want to continue living off his father’s allowance. Daniel tells his father to stop paying him because his boss is giving him a raise. His father gleefully agrees, and Daniel tells his boss the next day. Then, a month later, Daniel asks his boss for his new paycheck because rent is due tomorrow. His boss informs him that, although he is sorry, he cannot pay Daniel the higher wage due to low traffic in the bakery.
(1) Past performance is not consideration
(2) Daniel tells his boss he will rely on the raise
(3) Daniel relied on the raise by telling his dad he doesn’t need an allowance anymore
The court here ruled, in part, that the employee’s past performance does not constitute consideration.
What is the rule in Feinberg v. Pfeiffer Co.?
The court held that the board of director’s unenforceable promise is binding if the employee reasonably and detrimentally relied on the promise.
What is the second rule of Feinberg v. Pfeiffer?
The court held that a contract may be written on something like a napkin, and the court will only examine a person’s actions and expressed feelings.
What is the rule from Lucy v. Zehmer?
An offer that is, for some time [not longer than 3 months], not subject to revocation before acceptance.
What is an option contract?
Heather is away from her office in New York where she works as a publisher. She has to be in San Francisco for her sister’s long-awaited homecoming, and she lets her clients know about her vacation. While she was away, she gets an email from a client that reads, “Dear Heather, I know you are away, but I want to let you know that I would be honored for you to be the publisher of my life’s work, Love Secrets: How to Keep Them That Way, if you pay me $100,000 for every copy you sell. I can’t wait to start our partnership!” Heather, totally jet-lagged by her cross-country flight, replied via email: “haha, okay. Sounds great. We can talk more when I’m back in the city.” After a good night’s sleep, Heather is horrified to re-read the message and tries to calm herself down. “No,” she thought to herself, “This is outrageous. Of course, she knows I was joking...”
(1) offer or preliminary negotiations?
(2) acceptance?
(3) will the court look at subjective or objective views of the parties?
The court held that a father’s promise based on only a moral obligation is not enforceable.
What is the rule of Mills v. Wyman?
These are legal fiction s used by courts where there is no actual agreement that the court can enforce (especially in the case where a physician renders services to a person who is unable to agree due to their condition), but the court believes a party should be compensated.
What are quasi-contracts?
A letter of intent can constitute a contract if both parties manifested the intent to be bound by the letter, there was consideration on both sides of of the promise, and the terms are sufficiently definite to be enforced specifically.
What is the rule of Toys, Inc. v. F.M. Burlington Co.?
Caroline is getting married soon, so she is constantly looking for new ways to make her wedding stand out from the rest! Caroline has made deposits on many aspects of her wedding; the biggest thing she has left to do is to find a dress! Caroline knows that it’s totally “in” to wear designer dresses, so she finds the nearest boutique to her home. Caroline found a beautiful ball gown to walk down the aisle in, but the price scared her. She asked the associate if they could hold the dress for her. Eager to make a sale, the associate said, “Well, I suppose we can hold this dress until Friday, so you can ask your dad if he will help you!” Caroline agreed, and left the store. Later, a girl known only as “The Black Widow” came to the store looking for a wedding dress. She saw the dress Caroline had tried on earlier and asked the associate to buy it. The associate told The Black Widow about her arrangement with Caroline, and before she should finish, The Black Widow offered double the price that the dress was worth. The associate immediately agreed, and sold the dress to The Black Widow.
(1) Offer?
(2) Acceptance?
(3) Option Contract
(4) Consideration?
The court may infer evidence of consideration when a business agreement does not explicitly lay it out, as long as it’s reasonable.
What is the rule of Wood v. Lucy, Lady Duff-Gordon?
Sometimes when a promisee confers a material and substantial benefit on a deceased promisor and when it was clearly the intention of the deceased promisor to follow through with his gratuitous promise.
When is a moral obligation enforceable?
An acceptance of an offer is effective upon being sent, not the receipt of the offer.
What is the Mailbox Rule?
Carla was starting her new job as a veterinarian assistant. She loves animals so much, especially dogs. One day, an exasperated woman came into the office complaining about her sick puppy. Carla, wanting to be helpful, offered to care for the dog and keep her afterwards. The woman agreed and left. Carla, thinking everything was fine, tended to the dog and took him home. The woman arrived shortly after Carla left and was enraged that her dog was taken home by Carla. The woman demanded her dog back, but Carla claimed that she was breaking her promise.
(1) offer?
(2) acceptance?
(3) consideration?
(4) definitiveness?