Mock Exam Contract Law Essay

3282 Words Oct 22nd, 2012 14 Pages
Contracts Exam Question (with sample answers) Question 1 H. Bigbus (B hereafter) operates a construction supply business in Harrisburg. B specializes in supplying difficult-to-locate plumbing and light fixtures for contractors who do remodeling work. B sent the following letter to five contractors in the Harrisburg region: OFFER TO THE TRADE We have cornered the market for a source of brass "Orient Express" wall hanging light fixtures. We know (and we're sure that you do, too) that these fixtures are in such great demand that they are nearly impossible to obtain. If you are willing to take all your needs from us, we'll guarantee delivery at $20.00 each. I. M. Sap (S hereafter), a contractor who remodeled about twenty houses per year, …show more content…
By case law, the court will use the modified objective standard, keeping in mind that the offeree accepted. It is a modified standard because of the emphasis it places on the offeree's understanding, rather than a purely objective point of analysis. In applying the standard, the court will examine the document, its words, phrasing, and language to determine whether the impression of intent to K of offeror held by offeree was manifest from the document. By the aforementioned terms creating definiteness, the court should find a K. B will argue that it was a general request - one designed as a solicitation for offers. The letter made no mention of a specific quantity or a time for performance. Furthermore, B will argue that the court should take into consideration the course of the communications between B and S. In doing so, it will argue, the court will find that the manifest intention of B was not to K at that point. In fact, B made an offer, the offer was not accepted in the reasonable time permitted in the communication (R2C), therefore no K existed. More emphatically, S did not respond at all - indicating that S had no intent to K. Therefore, no K existed and S must pay the new price or return the lamps. This argument by B, however, has no merit. As previously noted, a general offer may be made (R2C and cases). Such a situation existed. In taking the lamps from X, S's acceptance was to the general offer. It is to that point that the

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