Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ren, a sales representative of an Electric Supply Inc made a demo for a new high - speed Auto - analyzer for Glen, the owner

Ren, a sales representative of an Electric Supply Inc made a demo for a new high-speed Auto-analyzer for Glen, the owner of a car repair service shop. The price of the Auto-analyzer was $3,500.00. Though the Auto-analyzers are useful, but the price is too expensive. Glen said to Ren that he might consider if he will lower the price to $2,500.00, but Ren refused and took the device.
One week later, an Auto-analyzer arrived at the shop with a letter from Ren stating that when I reported to my manager how impressed you were with our device, the manager said it would be worth selling one ever even at a loss just to break into the market in your city. We knew what an excellent reputation you have, and it would be a good move to have our product in use in your shop. Our price is reduced to $3,000.00 only for your company. If we didnt hear from you in ten (10) days, we shall assume that you have accepted this exceptional offer and we expect payment of our invoice. Glen did not respond and simply allows the device to sit idle beyond ten (10) days.
Question: Can silence be sufficient mode of acceptance? Please state your reasons.
Case 2
The CS Ball Company made a product called the "smoke ball" which claimed to be a cure for influenza and a number of other diseases. The Company published advertisements claiming that it would pay $150.00 to anyone who got sick with influenza after using its product, according to the instructions set out in the advertisement. The $150.00 reward will be paid by CS Ball Company to any person who contracts the increasing epidemic influenza colds, or any disease caused by taking cold, after having used the ball three times daily for two weeks, according to the printed directions supplied with each ball. Showing its sincerity, the company deposited $1M with the Alliance Bank, Regent Street where they can claim their reward.
When Mrs. Clark saw the advertisement, she bought a smoke ball and used it three times daily for nearly one month until she contracted the flu. She brought a claimed from the CS Smoke Ball Company, however, the company ignored her two letters. On her third request for the reward, the company replied with an anonymous letter that if it is used properly, the company had complete confidence in the smoke ball's efficacy, but to protect themselves against all fraudulent claims, they would need her to come to their office to use the ball each day and be checked by the secretary. Mrs. Clark sued the company on its promise to pay $150.00.
Issue: Is the performance of the conditions as advertised constitutes acceptance of an offer? Please state your reasons.
2
Case 3
Mr. A has bought a new 90-HP out-board motor. He told his friend, Mr. B that he will give him his old 35-HP motor as soon as the new one arrives. Mr. B has a small boat, but this small boat cannot accommodate the old engine. Mr. B needs to modify his small boat, but he will have to spent expensive modification. With Mr. As suggestion, he bought a new boat. When the new 90-HP motor arrived, Mr. A changed his mind and decided to sell the old one to other party.
Issue: Is there a binding contract between Mr. A & Mr. B? Please state your reasons. Hint. Please research Injurious Reliance (Equitable Estoppel)
Case 4
Dr. John and Mrs. Jane Marquez were generous philanthropists of BG Hospital. Dr. Marquez, who bequeathed $2.8Million for the hospital, had been recognized by naming the hospital's coronary and cardiac diagnostic unit after him.
The city is on the process of restructuring health care system. In response, the BG Hospital Foundation launched a campaign to raise funds to expand the hospital. Mrs. Marquez, the wife of the late Dr. John Marquez, was approached by the hospital's Chief Executive Officer to become a potential lead donor for the campaign and the suggested amount was $1Million. The foundation presented with a formal proposal that outlined the project and the hospital's interest in honouring her and the memory of Dr. Marquez by naming the new critical care unit after them. Of course, the renaming requires approval from the board of trustees. Mrs. Marquez seek the advice of her accountant and later signed the document pledging to donate $1Million over a five-year period to the BG Hospital Foundation. She made the first instalment of $200,000 and died a month later. In her will, she left one-fifth of her estate to the hospital. After Mrs. Marquis died, her estate refused to pay the balance of $800,000 owing on the pledge, claiming that the estate gift replaced it.
Issue: Is the pledge document a contract enforceable in law or merely "a naked promise"?
Case 5
John has a lending company. In his letter mailed on September 15, he offered to sell his business to Peter for $20,000.00. The letter was received by Peter on September 20. On September 25, Peter sent his letter of acceptance in which John received on September 28. However, on September 23, John had decided to withdraw and mailed a le

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Interest Theory

Authors: Leslie Jane, James Daniel, Federer Vaaler

3rd Edition

147046568X, 978-1470465681

Students also viewed these General Management questions