Business Law I

Topics: Contract, Contract law, Piano Pages: 3 (891 words) Published: February 7, 2013
Business Law I
Assignment 3
Spring Term B
BU 206-8A

Problem 8-1 page 232
1). Consideration. Daniel, a recent college graduate, is on his way home for the Christmas holidays from his new job. He gets caught in a snowstorm and is taken in by an elderly couple, who provide him with food and shelter. After the snowplows have cleared the road, Daniel proceeds home. Daniel’s father, Fred, is most appreciative of the elderly couple’s action and in a letter promises to pay them $500. The elderly couple, in need of funds, accept Fred’s offer. Then, because of a dispute with Daniel, Fred refuses to pay the elderly couple the $500. Discuss whether the couple can hold Fred liable in contract for the services rendered to Daniel.

The elderly couple cannot hold Fred liable because the promise to pay was made with past actions. There is a rule that past consideration is considered no consideration and there for Fred is not liable for his promise to pay the elderly couple $500. Problem 8-4 page 232

2). Offer and Acceptance. Carrie offered to sell a set of legal encyclopedias to Antonio for $300. Antonio said that he would think about her offer and let her know is decision the next day. Norvel, who had overheard the conversation between Carrie and Antonio, said to Carrie, “I accept your offer” and gave her $300. Carrie gave Norvel the books. The next day, Antonio, who had no idea that Carrie had already sold the books to Norvel, told Carrie that he accepted her offer. Has Carrie breached a valid contract with Antonio? Explain. Yes Carrie should not have sold the encyclopedias to Norvel because, she first offered them to Antonio who asked her if he could think about it and would get back to her tomorrow. She gave a silent approval to wait for his answer. After his leaving Norvel said he would take her offer (which she did not give the offer to him) and Carrie took his money and gave him the encyclopedias. Even though there was not a final...
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