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American Contract Law for a Global Age, 2017a

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contract in this case come into existence? Doesn’t that seem like the sort of thing<br />

clients would want to know and on which lawyers should be able to offer advice?<br />

Review Question 10. In Hendricks v. Behee, the court held that there was no<br />

contract even though the offeree had signed. In Municipal Consultants, the court held<br />

that there was a contract even though the offeree had not signed. Can you explain<br />

this apparent discrepancy in outcome?<br />

______________________<br />

Problems<br />

Problem 6.1<br />

Thelma says to Louise, “I’m getting a new television, and I’ll sell you my old<br />

one <strong>for</strong> $300. Do you want it?” Examine each of the following responses and decide<br />

whether a contract is <strong>for</strong>med.<br />

a. Louise says, “That sounds pretty good.”<br />

b. Louise says, “Yes, I’ll take it.”<br />

c. Louise says, “Yes, I’ll take it. Is it possible <strong>for</strong> you to deliver it to my<br />

apartment?”<br />

d. Louise says, “Yes, I’ll take it, if you can deliver it to my apartment <strong>for</strong><br />

me.”<br />

e. Louise says, “Yes, I’ll take it, if I can get my Mom to loan me the money.”<br />

f. Louise says, “Can you do any better on the price?” Thelma says “No.”<br />

Louise says, “I’ll take it.”<br />

Problem 6.2<br />

On April 10, Olivia Owner offers Peter Painter $5,000 to paint the exterior of<br />

Owner’s lakefront cabin. The job will, however, require scraping off some of the older<br />

paint around the porch that has been peeling. Painter says he is not sure he can do it<br />

<strong>for</strong> that price. Owner, who is about to leave on a fourteen-day cruise in the<br />

Mediterranean, says, “Well, think about it. You can decide while I’m off on the<br />

holiday. If you agree, just go ahead and do it.” Owner then departs.<br />

Two days later, on April 12, Painter goes to the cabin and spends six hours<br />

scraping paint. This takes much more time than Painter estimated, and he realizes<br />

that this job would be much more work than he expected and that he would need to<br />

get more than $5,000 <strong>for</strong> the work. He quits and leaves the premises. The next day,<br />

April 13, Painter is offered a job that pays a good deal more and will take a couple of<br />

weeks to complete. He immediately emails Owner that he’s decided not to do the<br />

______________________________________________________________________________<br />

112 CHAPTER II: CONTRACT FORMATION

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