Business Law

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Business Law BA 434 SE
Midterm Exam 2001 Spring Term
Question One:

Jim's promise is not enforceable under the contract law. A contract consists of 3 elements: 1) offer, 2) acceptance, and 3) consideration. The offer must be definite . It must have 1) subject, 2) price, 3) offeree, 4) quantity, and 5) time for performance and it must be communicated to the offeree. Applying the elements of a contract to the facts before us, the contract began when Jim offered Pam a place to live. He basically stated that all she needed to do was to come and see him. By accepting Jim's offer, Pam traveled to see Jim, thus completing the contract. However, Pam assumes that in Jim's consideration, he will pay for her incurred expenses as long as she visits him. Jim is not bound to the contract because the offer was not definite . Yes, Jim offered Pam, the offeree, a place to stay, however, he did not stated when the act could be performed nor did he state exactly what "providing a place to live" included. Meaning, he only offered Pam a place to reside, and there was not mention of Jim handling any other expenses. Jim's offer lacked quantity, time for performance, and definite communication. Thus, this intended contract is non-binding due to the indefinite offer.

Question Two

Due to the methods of terminating a contract, Oneal was relieved of his contract. A contract consists of 3 elements: 1) offer, 2) acceptance, and 3) consideration. The offer must be definite . It must have 1) subject, 2) price, 3) offeree, 4) quantity, and 5) time for performance.

Now applying one of the methods by which
h a contracts are terminated to the facts before us, when the Opera House burned to the ground, it made it impossible for both Oneal and Jordan to perform. Oneal was bound to the contract, in that he accepted the offer, however, because the Opera House ( the contracted location) was no longer avail for use, he was not able to perform his duties of...
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