Fall 2023 - Law 150- Homework #4

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Pace University *

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150

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Law

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Feb 20, 2024

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Uploaded by ProfessorWaterBuffaloPerson3033

Law 150 – Business Law Homework #4 1. Who creates quasi contracts? Why are they created? Quasi contracts are issued by judges when the parDes in quesDon don’t already have contracts with each other. Quasi contracts are put in place not to create a mutual agreement between the two parDes, but instead as a legal obligaDon. Quasi contracts are essenDally legal remedies given out to prevent one party from unjustly profiDng off someone else without a contractual agreement. 2. Charles owes Dan $100,000. Charles goes to CiD bank to take out a loan of $100,000 so he can pay off his debt to Dan. CiD agrees to make the loan but breaches its contract with Charles. Charles then defaults on his loan to Dan. Dan sues CiD bank because they breached their contract with Charles. What is the probable outcome of Dan’s suit against CiD? There are two possible legal claims; Dan v CiD Bank and Charles v CiD Bank. Dan’s outcome will be decided by the court, and will depend on a few factors, including evidence of breach, applicable laws, and contract terms. CiDbank most likely has their own terms and since Dan is a customer at CiDbank, there might be some contractual things he signed, so CiDbank might try to counter Dan’s claims. I believe Dan most likely has the advantage here, and CiDbank must pay him. 3. Mary goes shopping at Macy’s on Wednesday and sees a very expensive piece of furniture cosDng $60,000. It is an anDque, so there are no others like it for sale. Mary wants to get her spouse’s approval before buying it. Mary gives Macy’s $1,500 to give her the right to buy the anDque unDl Saturday at noon. Mary took pictures of the piece, and she returns with her spouse on Friday to buy the furniture. Macy’s apologizes and says they mistakenly sold the piece to another customer and gives the $1,500 back to Mary. Mary sues Macy’s for addiDonal damages. What is the probable outcome of Mary’s lawsuit? Mary entered a contract law with Macy’s by paying them $1500 to hold her place for the furniture, and Macy’s directly went against their contract by selling it to another customer, so Macys is at fault here. However Macy’s could try to miDgate the $1500, and then Mary could countersue for addiDonal damages. In my opinion, Mary will likely win due to the contract law her and Macy’s agreed upon. 4. Avery owned 500 shares of a stock that was acDvely traded on a naDonal stock exchange. Avery wanted to sell the shares but felt that her profit would be seriously diminished by selling through a broker and paying the customary brokerage commission. Avery offered the 500 shares to any of a group of six people in a conversaDon at a party. The offered price was $100 per share, the price at which the shares had closed that day. No one really responded to the offer at that Dme. Ten days later when the shares were trading at $105, Ben, one of the offerees at the party,

appeared at Avery's oﬃce saying that he accepted the offer. Avery claimed the offer no longer was available. Evaluate the legal outcome of this dispute. There are several factors playing into this; 1) offer and acceptance ; an acceptance of an offer is a legally binding contract.2) revocaDon own offer. An offer can be evoked at anyDme, b ut it must be communicated effecDvely. In this case, Avery did not communicate he revocaDon effecDvely, however she also didn’t receive a clear acceptance. 3) Dme of acceptance; in this case, ben’s acceptance was considerably late. The legal; outcome of this case comes down to precise Dming. If ben’s acceptance was made anyDme before the revocaDon, the valid contract may exist. However, if Avery validly revoked it, then ben’s offer means nothing. This one is tricky because of Dme. 5. On December 15, Dylan sent a leaer to Cooper offering to sell her business to Cooper for $300,000. On December 29, Dylan sent another leaer to Cooper that stated that she was withdrawing the offer. Cooper received that leaer on December 31. On December 30, Cooper sent a leaer to Dylan accepDng the offer. Dylan received that leaer of acceptance on January 3. Dylan refused to sell the business to Cooper, claiming that no contract had been formed. Cooper sued to enforce the contract against Dylan. Decide the probable outcome of the case. Dylan made a clear offer to sell her business to Cooper for $300,000 on December 15. This offer created a legal obligaDon, and was awaiDng acceptance. On December 30, Cooper sent a leaer accepDng the offer. Usually, the rule is that an acceptance is effecDve when sent. In this case, it wasn’t dispatched properly. This specific case abided by the mail ox rule, though, which means it is effecDve once mailed. Dylan sent a leaer to Cooper on December 29, staDng that she was withdrawing the offer. The effecDveness of revocaDon depends on when Cooper received it. Cooper received the revocaDon leaer on December 31. The issue here is whether Cooper's acceptance was effecDve at the Dme she sent it (December 30) or whether it was too late due to Dylan's revocaDon, when Cooper received on December 31. Per the mailbox rule, if Cooper had mailed their acceptance on Dec 30th, it should be considered valid. On the other hand, Dylan’s revocaDon is valid only when received, meaning that on December 30th, Dylan’s revocaDon leaer was not yet valid because it had not been received. the probable outcome of this case is that a contract was formed when Cooper accepted Dylan's offer on December 30. Dylan will likely be obligated to sell her business to Cooper for $300,000.

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