On behalf of Meadow’s Edge Golf Course & Club, Norton signs and returns a letter from Oralee, referring to her services as a resident golf pro and their price. When Norton attempts to complete the deal, however, Oralee refuses, claiming that they have no contract. Norton claims that they do. What standard determines whether these parties have a contract?
F2. Isabel owns a house, which she advertises for sale for $300,000. On April 1, Jon-Pierre offers Isabel $280,000 for the house. On April 5, Isabel has delivered to Jon-Pierre at his office a form that includes additional terms but does not state a price. At 9 a.m. on April 6, Jon-Pierre signs the form and gives it to Karla, his administrative assistant, with instructions to mail it. At 10 a.m., Isabel calls to tell Jon-Pierre that the deal is off. The next day, Karla mails the signed form to Isabel. When Isabel refuses to sell the house to Jon-Pierre, he files a suit against her, alleging breach of contract. Isabel claims that there was no contract. What are arguments supporting each party’s position? What is the court likely to rule? Explain your answers.
F3. Greensward Landscaping Company enters into a contract with Kent to landscape Hillview Country Club’s golf course, using Intown Nursery to supply trees and shrubbery. Jonas owns a lot next to Hillview’s course that will benefit from the improved landscaping. The landscaping is a gift from Kent, a wealthy club member, to Hillview. What type of beneficiary is Hillview? What type of beneficiary is Jonas? What type of beneficiary is Intown Nursery? If Greensward refuses to do the job, who can enforce the contract against it? (5 points)
F4. On May 1, Newtown Motors, a used-car dealer, wrote a letter to O’Reilly, which stated, “We have a 1969 Pontiac Firebird in mint condition that we will sell you for $12,500 at any time before June 1. [Signed] Newtown Motors.” By May 15, having heard nothing from O’Reilly, Newtown Motors sold the Firebird to another party. On May 25, O’Reilly told Newtown Motors that he accepted the offer and tendered $12,500. When Newtown Motors told O’Reilly it had sold the car to another party, O’Reilly claimed Newtown Motors had breached their contract. Is Newtown Motors in breach? Explain. (5 points)