Case Studies Bus Law

Topics: Contract, Line of credit, Credit Pages: 4 (1232 words) Published: April 8, 2014
Waller Business Law
Writing Assignment 3 Spring 2014 3-19-14
Chapter 13: Nebraska Beef, Ltd. V. Wells Fargo Business Credit, Inc.

Case Concept Review:

1. How did the court determine that the offer was sufficiently definite?

The offer of the Wells Fargo Business Credit, Inc. was submitted to Nebraska Beef in the form of a letter. When Nebraska Beef engaged in accepting a line of credit from Wells Fargo they entered into a written credit agreement that outlined the terms of the line of credit and the over-advance which contained additional and progressive fees for each additional over-advance loan (the amount over the initial credit limit). With each of the three over-advance lines of credit or advances of money that Nebraska Beef took out with Wells Fargo, a formal written amendment to the original credit agreement was provided. Thus even though there were no new agreed upon terms, it is a sufficiently definite agreement in that Nebraska Beef evidenced their acknowledgement of additional fees through these three previous advances and further they acknowledge receipt of information stating these additional fees.

In fact it was stated in the case that “an offer may be inferred wholly or partly from words spoken or written or from the conduct of the parties or a combination thereof.” In this case clearly the conduct of Nebraska Beef indicates an acknowledgement of additional fees based on their previous advances and the associated fees. In the May advances, Wells Fargo simply charged the same additional fees as were in place in the third advancement and then at the end of the month (23rd) they sent a letter that Nebraska Beef acknowledges receiving; outlined the increase of the advancement fees. Nebraska beef continued to take advances throughout May and in this regard the offer was not only sufficiently definite but a unilateral contract existed (a promise for...
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