Scenario A

Kanye, an accounting student at Centennial College, interviews for a job with two firms. He really wants to work for Better Accountants LLP ("Better") but gets an offer of employment from Good Accountants LLP ("Good") first and accepts it. When he is signing the contract with Good, he tells the receptionist that he would really like to work for Better.The receptionist tells him "Don't worry about it.We will let you cancel the contract if you want."Kanye reads the written contract and notices that there is nothing in it that would let him cancel.

A week later Kanye receives offer from Better, which he also accepts. He does so because he believes he is economically better off with Better and will be able to "cancel" his acceptance with Good.

a. Is there a valid employment contract between Kanye and Good, or Kanye and Better? Explain your analysis, considering the six elements of a valid contract.

b. Are both contracts enforceable against Kanye? Explain your analysis.

c. What is going to happen to Kanye now? What should he do?

d. What should Kanye have done to avoid the situation that he is in?

Scenario B

Kawhi wanted to buy t-shirts that he could customize and sell for a profit.Steph manufactured plain white t-shirts that seemed to be of high quality.Steph ordinarily sold the t-shirts for $5 each, but he told Kawhi that he would give him a deal if he ordered a large volume. Kawhi said he thought that would work for him, and he looked forward to doing business with Steph.

Three days later Kawhi emailed Steph an order for 1,000 t-shirts stating that he would pay $3 a t-shirt.Kawhi had just agreed to sell customized shirts to Pascal and Kyle Sporting Goods ("PKSG") for $5 each, and to deliver the order in 2 weeks' time.A few days later Steph replied to the email, stating that he would need three weeks to fill the order and that he would have to charge $4 per t-shirt.Kawhi doesn't know what he is going to do. He could not possibly meet his obligations to PKSG.

a. Is there a valid contract between Kawhi and Steph, or Kawhi and PKSG? Explain your analysis, considering the six elements of a valid contract.

b. Are both contracts enforceable? Explain your analysis.

c. What is going to happen to Kawhi now? What should he do?

d. What should Kawhi have done to avoid the situation that he is in?