BA 3301 Legal Environment of Business - Contracts Case Assignment FACTS: AAA Engineering, Inc. (\"AAA\") specializes in large scale land development projects. AAA wanted to bid on a project for a new subdivision development. Specifically, the project would require AAA to purchase 50 cubic yards of dirt to be hauled to the development site (some miles out of the Houston city limits). AAA would spread the dirt in strategic areas on the property for the purpose of minimizing flooding once the housing development is built out. AAA does not have access to dirt hauling trucks, so it will spread the dirt using its small backhoes. AAA entered into dirt purchase negotiations with Best Dirt, Inc. (\"Best Dirt\"), a company which specializes in the kind of dirt AAA needs for the subdivision project. The conversation went as follows: AAA: \"We need 50 cubic yards of quality B-4 dirt to be delivered to a subdivision development location at the intersection of Highways I-10 and 99. Because the site is located near a busy intersection, we prefer to have most of the dirt delivered after peak traffic rush hours such as early morning, mid-day, and early evening. We will pay $150 per standard dump truck load of dirt.\" Best Dirt: \"We can deliver the 50 cubic yards of B-4 dirt on a 10-day notice of start date. If we must deliver at these staggered times, charges will be $170 per truck load. Or, you can provide a traffic officer on site, and then we are comfortable at $155 per load.\" AAA: \"We cannot pay $170, but $155 is acceptable for delivery at staggered times. If you want a traffic officer, you provide the officer and cover costs.\" Best Dirt: \"We accept your offer and insist that a traffic officer be on site for all deliveries. This is standard safety procedure when delivering this quantity of dirt, especially when deliveries are staggered.\" AAA: \"No traffic officer. We will pay $160 per truck load of dirt. We will be in touch within 3 weeks with a firm start date.\" DIRECTIONS: A. Define 'contract.' (10 points) B. List the elements required to form a valid contract, and give a definition for each element. (10 points) C. Apply the contract elements to the facts of this case to determine whether or not a valid contract is formed. Start this discussion by applying the Predominant Factor Test, given that this scenario involves a mixed contract for goods (dirt) and services (hauling). (80 points)