1. List and explain the requisites of a valid offer. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 2. List and explain the ways an offer can be terminated. 3. What are the exceptions to offeror revocation? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 4. Chip Monk has been in the business of supplying paint to commercial companies for years. On 2/1 Polly Ester’s Painting calls to purchase 100 gallons of Super Dry, Atrium White paint. Chip offers the 100 gallons at a price of $19 per gallon. Polly accepts. On 2/3 Polly sends the following letter confirming the deal. “As discussed and agreed, we hereby accept your offer of 100 gallons of Super Dry, Atrium White paint at a price of $19 per gallon. We also reserve the right to purchase up to 1000 gallons more at the same price for twelve months from this date” (signed) Polly Ester. Is there a contract? If so why, if not why not? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 5. Lilac A. Rugg is auctioning without reserve several valuable art pieces from her gallery. The last item, a painting by Yanni entitled “Waxing the Car” receives no offers for ten minutes. Lilac pulls the painting off and the following week one of the patrons who attended the auction is threatening to sue Lilac for not selling the painting. Will Lilac be liable? Why or why not? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 6. J.L. Breaker and Sons owned a building and land on First Street in San Jose, CA. It decided to sell the property by using a sealed, written bidding process. All potential bidders met the minimum qualifications for bidding. ABC submitted a bid for $1.2 million and XYZ submitted an alternative bid for $900,000 and/or $1 higher than the highest bid received. J.L. decided to sell the property to ABC after consulting with its attorneys. XYZ sued J.L. in a specific performance lawsuit arguing that the property should have been sold to them. Who should prevail here and why? Make sure you advance both sides of the argument. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 7. Explain the concept of an assignment of rights in a contract. Give an example outside of those given in the Guide and the text. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 8. Explain how a novation works. How does it differ from a delegation of duties? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 9. Lillie is a tuba player. Jonathan is a conductor who badly needs a tuba player to complete his orchestra and perform for a group he contracted with earlier in the year. He persuades Lillie to become a part of the orchestra, but her tuba is at a pawn shop and she needs to sign a note payable stating she will pay $600 on or before July of the current year. The owner of the pawnshop tells Lillie that she must get someone to guarantee her payment. Jonathan agrees to become secondarily liable. Will the contract fall within the statute of frauds? If so why, if not why not? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 10. ABC Manufacturing orally agreed to sell 200 metal boxes at a price of $2 each to XYZ Retailers. XYZ decided it could sell another 150 boxes more and called ABC orally requesting an increase in the contract to 350 boxes at a price of $2 each. ABC orally agreed but sent only 200 boxes. XYZ sues to force ABC to perform. Explain who will prevail and why. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 11. Explain the possibility test in the statute of frauds. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 12. John Brown signs a lease agreeing to rent a commercial space from XYZ Properties for a period of two years at a price of $24,000 total. The lease was a preprinted form and it stated that there are no pets allowed on the premises, in handwriting and initialed by both parties it was stated “one small dog okay.” Three months into the lease XYZ discovered Brown was bringing his 20 pound shitzu dog to work and informed him that the lease was terminated because Brown violated the ban on pets. Will XYZ be successful in evicting Brown? Why or why not? _