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James was discharged by MegaCorp. He received a letter from MegaCorp offering to pay him double the usual severance pay if he signed a document

James was discharged by MegaCorp. He received a letter from MegaCorp offering to pay him double the usual severance pay if he signed a document releasing MegaCorp from all claims he might have had. James signed and dated the release and put it in a mailbox outside the post office. When he returned home, he found he had received a check from MegaCorp in the same amount as offered in the letter. He then returned to the post office, persuaded a postal employee to open the mailbox and retrieved the release. He cashed the check and then filed an age discrimination suit against MegaCorp. Was a contract formed when James put the release in the mailbox?

Watten Construction contracted to build the Sillimans a house for $50,000. When Watten began digging the foundation, it hit bedrock, which was highly unusual in that area. Watten told the Sillimans that he required an extra $5000 to build the house. The Sillimans agreed, but when the house was done, refused to pay Watten any more than the original contract price. If Watten sues the Sillimans for the extra $5000, what is the result? Why?

Williams bought a house from Smith. He was not told before the sale that a woman and her four children had been murdered there 10 years ago. He learned this from a neighbor after the sale. Williams sued Smith and his real estate agent, seeking to rescind the sale. Can he rescind the contract?

Dax, 15, bought a diamond ring from a local jewelry store. The jeweler was aware of his age. He made a partial payment on the ring of $100. Ten months later, Dax's girlfriend broke off the engagement, but refused to return the ring. Dax asked the jeweler to repossess the ring, but the jeweler took no action. Dax sought to disaffirm the contract for the ring and the jeweler argued that he could not do so without returning the ring. Can Dax disaffirm?

Sara is shown Olson's house which she likes but has to consult with the husband before she can make her final mind. Sara and Olson make an option to contract whereby Olson promises to keep the house for Sara for one month ending January 31, 2012. The house was on offer for $230,000. On January 16 Olson got an irresistible offer from a rich corporation who after learning of the option to buy deal were willing to pay $250,000. Olson took the offer and quickly closed on the deal. Sara wrote a letter to Olson promising to take the house at $230,000 which letter reached Olson on January 28. She got not a very nice reply. Advise Sara.

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