29 - CONTRACTS MID-TERM EXAM SANTA BARBARA/VENTURA COLLEGES...

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CONTRACTS MID-TERM EXAM SANTA BARBARA/VENTURA COLLEGES OF LAW C. SMITH PAGE 1 QUESTION 1 Sesame School was preparing to move its school to a new campus. At its old campus, Sesame School operated its school out of portable classrooms. Bert is exclusively engaged in the business of buying, selling and leasing modular portable buildings. Bert had heard that Sesame School intended to sell its portable classrooms. Bert telephoned Ernie, the principal of Sesame School to express his interest in purchasing the classrooms. During the initial telephone call, Ernie told Bert that the classrooms had been purchased for $400,000. Bert said that he would not pay anywhere near that amount. Ernie asked how much he would pay. Bert said he would have to think about it. Three days later Bert phoned Ernie and said he would pay $55,000 for the classrooms. Ernie said that he would pass that figure on to the school’s board of directors. Ernie told Bert that no sale could be accomplished without approval from the board of directors. Two days later Ernie phoned Bert and told him that the board of directors had approved the sale of the classrooms for $55,000. Ernie said he would prepare a “Letter of Agreement.” The next day Ernie faxed to Bert a draft “Letter of Agreement.” The Letter of Agreement contained the essential terms of the sale including the price and the fact that three portable classrooms were being sold. It had two signature blocks. Ernie did not sign the signature block on the Letter of Agreement. Bert received the Letter of Agreement, signed it and faxed it back. Nothing happened for 10 days. On the 11th day Bert phoned Ernie. Ernie said that he had signed the Letter of Agreement but that the signed letter was at the new school location and that he would send it to Bert the next day. Another five days went by without Bert hearing from Ernie or receiving the signed copy of the Letter of Agreement. Bert called Ernie again. This time Ernie told him that the school had been approached by another buyer for the classrooms and that the classrooms were not for sale. Bert then immediately went to Ernie’s office and tried to personally deliver a cashier’s check for $55,000. Ernie refused to accept it. Bert brings a lawsuit against Sesame School for breach of contract. Discuss fully the following:
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CONTRACTS MID-TERM EXAM SANTA BARBARA/VENTURA COLLEGES OF LAW C. SMITH PAGE 2 1. In the lawsuit between Bert and Sesame School, who should prevail? 2. Assuming that Bert prevails what should he be entitled to by way of remedies for breach of contract?
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CONTRACTS MID-TERM EXAM SANTA BARBARA/VENTURA COLLEGES OF LAW C. SMITH PAGE 3 QUESTION 2 Janie DeBergerac was a young lady of means who was 17 years old had a very prominent nose. Although it was very noble looking, she decided that she wanted a smaller turned-up nose. She decided she would give herself a present for her upcoming 18th birthday she would get a nose job. She called the best plastic surgeon in town, Dr. Beverly Hills, and
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This note was uploaded on 11/05/2009 for the course MATH 120 taught by Professor Gerogestan during the Winter '08 term at Santa Barbara City.

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29 - CONTRACTS MID-TERM EXAM SANTA BARBARA/VENTURA COLLEGES...

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