Part A (Chapter 11):
Apply the Mirror Image Rule or the Battle of the Forms Rule,
whichever is appropriate, to answer the following questions.
QI. Brian has purchased a new Toyota Camry and offers to sell his used 1998 Honda Civic to his
neighbor, Amanda. Brian’s written offer states, "I, Brian, will sell Amanda my 1998 Honda Civic
for $2500, $1000 as a down payment and the remaining balance financed at 10% interest, with
monthly payments of $300."
Amanda responds with a following written acceptance, " I will purchase Brian's 1998 Honda
Civic for $2500, $1000 down payment, the remaining balance financed at 10% interest, with
monthly payments of $300. Brian agrees to have the oil changed and the car detailed before
delivery."
1. What rule will be applied to determine if the acceptance with additional terms is
effective?
2. Why would that rule apply?
3. Was acceptance effective and as such, created a contract between the parties?
4. How will the additional term be treated?
QII. Kate, a licensed the masseuse, sends the following written offer to Josh, a former client,
"Kate will sell Josh a massage package with ten 90 minute deep tissue massages for $500. All
massages must be scheduled at least one week in advance. Payment is due upon receipt of service
and must be made in cash or by credit card".
Josh responds to Kate's offer with the following written acceptance, "Josh agrees to purchase
Kate's massage package with ten 90 minute deep tissue massages for $500. All massages must be
scheduled at least one week in advance. Payment is due upon receipt of service must be made in
cash or by credit card. Josh may cancel and reschedule any scheduled massage appointment with
24-hour notice."
1. What rule will be applied to determine if the acceptance with additional terms is
effective?
2. Why would that rule apply?
3. Was acceptance effective and as such, created a contract between the parties?
4. How will the additional term be treated?
QIII. Greentree Plant Nursery sends Leafy Landscaping the following notice " All one gallon
ornamental bushes can be purchased at $13.00 a unit. Greentree will deliver the bushes to buyer's
place of business. Payment to be made by cash or credit card"
Leafy Landscaping then sends the following preprinted purchase order for 80 one gallon
ornamental bushes. The purchase order includes the term "Greentree agrees to provide a 10%
discount on all ornamental bushes not delivered to buyer within 30 days of the date of this
purchase order."
1.
2.
3.
4.
5.
What rule will be applied to determine if the purchase order with additional terms is
effective?
Why would that rule apply?
Was the acceptance effective and as such, created a contract between the parties?
If so, does the additional term become part of the contract?
Assuming it does, is there any way Greentree could prevent the additional term from
becoming part of the contract?
Part B (Chapter 12): The attached questions deal with the element of consideration. Did each
party exchange something of sufficient legal value to meet the element of consideration and thus
create a contract? Do not examine other aspects of the agreements, just the element of
consideration.
1. Patty offers to bake Mark a pumpkin pie if he will promise to paint her house, wash her car
and build a fence around her back yard. Mark accepts Patty's offer. After washing Patty's car,
Mark decides that Patty has taken advantage of him and tells her that he will not paint her house
or build the fence. Patty performs as she promised and sues for breach of contract. Did both
parties provide adequate consideration to create a binding contract? Explain why or why not.
2. Jerry, is a part-time college student. On Wednesday, he notices that his neighbor, Mrs. Smith,
has had a load of wood delivered. Jerry has a lot of time on his hands and decides he would enjoy
splitting and stacking Mrs. Smith's wood. He tells Mrs. Smith that on Saturday he will split and
stack her wood. Mrs. Smith is very excited and thanks Jerry a number of times. On Saturday,
Jerry gets up late and decides he would rather spend the day on the couch watching football. Mrs.
Smith has to pay someone else to split and stack the wood. Mrs. Smith sues Jerry for breach of
contract. Did both parties provide adequate consideration to create a binding contract? Explain
why or why not.
3. Mandy has inherited a large amount of money and decides she would like to do something
nice for her friend Donna. Donna has been dating a real loser named Wally. Mandy tells Donna
that she will give Donna $5000 if she promises not date Wally anymore. Donna accepts the offer.
Later Mandy and Donna have a falling out and Mandy refuses give her the $5000. Donna sues
Mandy for breach of contract. Did both parties provide adequate consideration to create a
binding contract? Explain why or why not.
4. Cindy is running for mayor of La Grande. She recently broke with her boyfriend, Steve.
Cindy is aware that Steve is very hurt and quite vindictive. Cindy is concerned that Steve may
be making defamatory statements about her. She thinks that such rumors might jeopardize her
chance of being elected. Cindy offers to give Steve $500 if he promises not to spread any untrue
defamatory statements about her until after the election. Steve accepts her offer. After Cindy is
elected, he tries to collect the $500 but Cindy refuses to pay. Steve sues for breach of contract.
Did both parties provide adequate consideration to create a binding contract? Explain why or why
not.
5. Fernando is a famous sculptor who, in his later years, has developed arthritis. He still sculpts
but only when his hands aren't hurting. Mrs. Howell has wanted Fernando to create a bust of her
husband for years but he has always been too busy. Fernando finally has the time and Mrs.
Howell has Fernando sign the following agreement "Fernando agrees to create a bust of my
husband, if he feels he can without too much discomfort, and in return, I agree to pay him
$4000." Did both parties provide adequate consideration to create a binding contract? Explain
why or why not.
6. Will sues Joe and is awarded a $40,000 judgement. Joe claims that he cannot pay the $40,000
and offers instead to give Will $15,000 and to paint his house. Will agrees and accepts the
$15,000 and has Joe paint his house. Later, Will asserts that Joe still owes him $25,000. Did
both parties provide adequate consideration to create a binding debt adjustment agreement?
Explain why or why not.