Ebenezer offers to sell Cratchitt Industries a gruel-making machine. The offer states that it will remain open until midnight on Christmas Day.

On December 22, however, Ebenezer calls Cratchitt Industries and officially notifies the company that he has sold the machine to another company. Bob Cratchitt, the owner, gets on the phone and tells Ebenezer that it is not yet Christmas Day, he is officially accepting Ebenezer's offer, and he insists they now have a contract.

Using the four elements of a contract - agreement (which consists of offer and acceptance), consideration, capacity, and legality -show why a contractis or is notpresent in this fact situation.

QUESTION 2.

A bunch of young adults are downtown in San Antonio on Friday night. A group of about four wave down a cab. The cab stops, they get in, and the driver asks them where they're going. They give him an address.

When they arrive, they refuse to pay.

If the cab driver were to pursue a legal suit against these young adults,what argument under contract law is going to best address this situation? How would these facts apply to the law?

Remember, this is a test contracts law. I don't want to hear a bunch of stuff about how these kids stole anything or how they're going to go to jail, okay?Focus on the contract issues and not on the tort or criminal issues you see or might think you see. Those are red herrings.