Section Three

10 points

Directions: Using your knowledge of valid contract formation, use the information in the following scenarios to determine whether there is a valid contract, and if so, identify the offer, the acceptance, and the consideration for each:

1. You have visited a neighbor's garage sale, and have asked the neighbor to put aside a television because you want to buy it. The neighbor agrees and puts aside the television.

2. You want to sell an undeveloped piece of swampland that you have inherited. While talking on the telephone with a friend, he agrees to buy the land for $450.00.

3. You have decided to purchase a pet horse. You agree on a price and the seller writes out a bill of sale and signs it.

4. Your son has been in college and has a large balance on his credit card that was used for school supplies, books, and tuition. You want to help him out since he has done very well in school. You write a letter to the credit card company stating that you will be paying the bill in the future. The credit card company agrees.

5. You have ordered a black sweater from an Internet source, but received a pink one instead. The website states that there are no returns or exchanges accepted.

6. You have purchased a super-sonic vacuum cleaner from a company who advertises that "your money will be refunded if not satisfied." The vacuum does not perform well, and when you call to get a refund, the company refuses. You remind the company that the ad states that your money will be refunded if not satisfied, and the company tells you that is correct, but they are satisfied, so there will be no refund!

7. You have received an advertisement in the mail from a major appliance store, for the sale of a stereo system for $200.00 if you purchase it by February 1st.

8. You have agreed to watch your neighbor's home while he is away on vacation. Your neighbor often watches your home while you are away and promises to watch your home the next time that you leave town.

9. You have been harassed by an ex-partner who will not leave you alone. In desperation, you have agreed to pay another friend $50.00 plus mileage to go to the home of the ex-partner and threaten bodily harm.

10. While it is unethical for an attorney to share fees with a paralegal, your supervising attorney has proposed to pay you a percentage of the firm's gross income based on the number of hours you have billed and clients that you have referred to the firm. You agree.

Section Four