QUESTION 1

Arnold runs a plumbing company. He and Lucy agree on a price for Arnold to install the plumbing in a new guest house that Lucy is building in her backyard.

As he's working the job, Arnold discovers that he didn't include a sufficient charge for labor in his original price. He tells Lucy that unless he receives an additional $2,500, he can't complete the job. Lucy agrees to pay.

Arnold finishes the plumbing work and submits his bill to Lucy. Lucy pays the amount due under the original contract but refuses to pay the additional $2,500. Arnold sues for breach of contract, claiming that Lucy's failure to pay the $2,500 breached the second contract they entered into.

Who is most likely going to prevail in this situation, Arnold or Lucy, and why?

QUESTION 2

Lanier has an electric scooter he wants to get rid of. He calls Burbank and offers her the electric scooter for $800. Burbank says, "Would you take $650?" Lanier says he'll think about it.

Lanierthen calls Edison and offers him the golf cart for $800. Edison accepts the price, and they agree the transfer will be made the next day.

An hour later,Burbankcalls and tellsLaniershe's decided to accept his offer to sell the golf cart for $800.LanierinformsBurbankthat she's too late, the golf cart has been sold.Burbankbecomes enraged and threatens to sue.

What is the likely outcome ifBurbanksuesLanier?