cee167-sp06-mt1-Ibbs-soln

cee167-sp06-mt1-Ibbs-soln - Solutions for Midterm#1 Feb...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Solutions for Midterm#1 Feb 22,2006 Question #1 [10 points] Mary the housepainter knocked on Tom’s household door on Monday and said “I will paint your house for $20,000.” Tom said, “I need to think about this and I’ll get back to you by Thursday.” Tom did not respond on Thursday. Mary arrived at Tom’s house on Friday and began to paint. Tom left the house at 8 am and saw Mary painting but said nothing. The following Tuesday, Mary presented Tom a bill for $20,000. Tom refused to pay. They brought their dispute to you, the local judge. What is your decision and why? A: Five necessary elements for a valid and enforceable contract: ± Offer ± Acceptance ± Consideration ( Payment plan, Exchange, etc.) ± Legal Subject ± Competence of the Parties Æ mention 3out of 5 get 2.5 points for each. [Offer] Mary the housepainter knocked on Tom’s household door on Monday and said “I will paint your house for $20,000.” Î Mary gave an offer. [Acceptance] Tom said, “I need to think about this and I’ll get back to you by Thursday.” Tom did not respond on Thursday. Î Tom did not accept. Mary arrived at Tom’s house on Friday and began to paint. Tom left the house at 8 am and saw Mary painting but said nothing. Î Tom still did not accept because no response (silence) is not an acceptance. [Competence] If Mary is competent (has license of painting and is an adult), then the competent requirement is met. If Tom is an adult and conscious, then he is competent. [Legal subject or consideration] Î [Conclusion 2.5’] No contract Î Even if both Mary and Tom are competent. It is reasonable that Tom refused to pay.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

cee167-sp06-mt1-Ibbs-soln - Solutions for Midterm#1 Feb...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online