1. Taylor is a buyer of file cabinets manufactured by Martin. Martin's contract with Taylor calls for delivery of fifty file cabinets at $40.00 per cabinet in five equal installments. After delivery of two installments (20 cabinets), Martin informs Taylor that because of inflation, Martin is losing money and will promise to deliver the remaining 30 cabinets only if Taylor will pay $50.00 per cabinet. Taylor agrees in writing to do so. Discuss fully whether Martin can legally collect the additional amount on delivery to Taylor of the next installment of 10 cabinets. Was there consideration for the amendment?
2. On Thursday, Dennis mailed a letter to Tanya's office offering to sell his car to her for $3,000.00. On Saturday, having changed his mind, Dennis sent a fax to Tanya's office revoking his offer. Tanya did not go to her office over the weekend and thus did not learn about the purported revocation until Monday morning, just a few minutes after she had dropped off a postal letter of acceptance to Dennis at the post office. When Tanya demanded that Dennis sell his car to her as promised, Dennis claimed that no contract existed because he had revoked his offer prior to Tanya's acceptance. Is Dennis correct? Explain. Tanya later found a similar car for sale for $4,000.00 If Tanya should win the suit, what amount of money damages would she be awarded? Why?
3. Schmidt has a huge piece of used farm equipment for sale. He offers to sell it to Barry for $10,000.00. The night before Barry mails his acceptance, the farm equipment is destroyed by fire. Is there a contract?