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Lulu owns a bakery. Which of the following is a binding agreement: Wes is a flour manufacturer. He offers to sell 40 bags of flour
Lulu owns a bakery. Which of the following is a binding agreement:
- Wes is a flour manufacturer. He offers to sell 40 bags of flour to Lulu for $200. Lulu says she will think about it. That night she decides to buy the flour. She calls Wes the next morning. Before she can say anything, Wes says that he can no longer supply the flour. Lulu demands the flour and says they have a binding contract.
- Luke is 15 years old. He comes into the bakery and agrees to buy 2 pies for his lunch at $5 each. Lulu agrees to provide the pies. Before he pays, Luke says that he no longer wants the pies.
- Lulu wants to give Patty a birthday cake as Patty is Lulu's best friend. The parties sign a deed which provides that Lulu will give Patty the cake because of their friendship.
- Lulu places a sign outside her store saying,"Our bread is so fresh that if anyone finds any mould within two days of purchase, we will give you two loaves free. To ensure we keep our promise, we keep ten loaves aside ready to honour our freshness pledge." Jin comes into the store with mouldy bread demanding the two free loaves.
- Lulu's lease is coming to an end. Lulu's landlord tells her that he will renew the lease for an extra 5 years based on the same rent and terms as the old lease.He tells Lulu that he is on vacation and when he gets back to Australia he will sign the new lease. Lulu thanks him and tells him that based on these assurances she will renovate the store. Lulu spends a large amount of money renovating the store.When the landlord returns he says he has thought about it and is not prepared to renew the lease.Can Lulu sue the landlord?
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