Posted on by Judy

Week5 Contract Law

Flour-Is-Us v. Clarence: Breach of Contract
In Week 1, on behalf of your client Clarence Holden, you drafted an offer letter to Flour-Is-Us, with the terms of the contract for sale. In Week 2, you drafted a contract between the parties, i.e., Clarence Holden and Flour-Is-Us, incorporating the desire of the parties based on the facts. In Week 3, you assessed Clarence Holden’s duties as the insured and the possibility of getting Flour-Is-Us to be the defendant in the case. In Week 4, you analyzed how conditions outside the control of a party can affect a party’s existing contract.
Flour-Is-Us has sued Clarence’s company for breach of contract. They are seeking the remainder of the amounts they would have received under the contract.
Under the supervision of your attorney, review the petition from Flour-Is-Us and draft an answer of 500–800 words to the petition, including any affirmative defenses or counter claims Clarence may have.
 
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  1. Which of the following is a false statement? A. An offer for a unilateral contract generally may be able to be revoked at any time prior to the performance of the requested act. B. Under the objective theory of contracts, the courts will look at the subjective intent of the parties to determine if a contract was formed. C. A contract may be oral and be enforceable. D. The doctrine of quasi-contract attempts to prevent unjust enrichment when no contract actually exists
  2. A mutual mistake exists when both parties to the contract have an erroneous assumption about the same important fact. When both parties are indeed mistaken about the same important fact, the resulting contract can be avoided if: The mistake relates to a basic assumption upon which the contract was made The mistake relates to an intrinsic fact that is material to the contract The party adversely affected by the mistake did not bear the risk of the mistake All of the choices are correct.
  3. Sam, a minor, bought a yacht from Marine Co. Inc. Under the terms of the contract, Sam agreed to make monthly payments. About four months after reaching his 18th birthday, Sam became bored with boating and wanted to disaffirm the contract. He had made five (5) payments up to the point that he decided to rescind (cancel). Can he disaffirm the contract? Sam could not disaffirm because the yacht was a necessity. Sam, most likely, could not disaffirm because he ratified the contract. Sam could not disaffirm because the yacht was now used and worth much less than when he bought it. Sam could disaffirm the contract.
  4. Sam, a minor, bought a yacht from Marine Co. Inc. Under the terms of the contract, Sam agreed to make monthly payments. About four months after reaching his 18th birthday, Sam became bored with boating and wanted to disaffirm the contract. He had made five (5) payments up to the point that he decided to rescind (cancel). Can he disaffirm the contract? Sam could not disaffirm because the yacht was a necessity. Sam, most likely, could not disaffirm because he ratified the contract. Sam could not disaffirm because the yacht was now used and worth much less than when he bought it. Sam could disaffirm the contract.