Answers_to_Chapter_9_Problems - C HAPTER9 INTRODUCTION...

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CHAPTER 9 INTRODUCTION  TO CONTRACTS 1 ANSWERS TO PROBLEMS CHAPTER 9 1. Owen telephones an order to Hillary's store for certain goods, which Hillary delivers to Owen. Neither party says anything about the price or payment terms. What are the legal obligations of Owen and Hillary? Answer: Implied Contracts . Owen and Hillary’s agreement deals in goods, so the contract falls within the UCC. Omission of a stated price would require payment of a “reasonable” price with full payment being made when possession of the goods is obtained. 2. Minth is the owner of the Hiawatha Supper Club, which he leased for two years to Piekarski. During the period of the lease, Piekarski contracted with Puttkammer for the resurfacing of the access and service areas of the supper club. The work, including labor and materials, had a reasonable value of $2,540, but Puttkammer was never paid because Piekarski went bankrupt. Puttkammer brought an action against Minth to recover the amount owed to him by Piekarski. Will Puttkammer prevail? Explain. Answer: Quasi-Contract . No. Judgment for Minth. In order to establish a cause of action for unjust enrichment, Puttkammer must be able to demonstrate that (1) a benefit was conferred on Minth by Puttkammer; (2) Minth knew of or appreciated the benefit; and (3) Minth accepted or retained the benefit under circumstances making it inequitable for Minth to retain the benefit without paying for its value. Here, the first and second elements have been satisfied but not the third. An action for unjust enrichment is based on the moral principle that one who has received a benefit has the duty to reimburse the other when to retain that benefit would be unjust. But it is not enough that the benefit was conferred and retained; the retention must also be unjust. Here, Puttkammer does not claim or imply that Minth ordered or ratified the work, that he performed the work expecting to be paid by Minth, that he was prejudiced by any misconduct or fault on Minth's part, or that Minth's interests were so intertwined with those of Piekarski that the contract could be said to have been executed on Minth's behalf. Rather, all that Puttkammer has alleged is that Minth knowingly acquiesced in the performance of the work. Puttkammer v. Minth , 83 Wis.2d 686, 266 N.W.2d 361 (1978). 3. Jonathan writes to Willa, stating “I'll pay you $150 if you reseed my lawn.” Willa reseeds Jonathan's lawn as requested. Has a contract been formed? If so, what kind? Answer: Unilateral Contracts . Yes, this is an example of a unilateral contract. Jonathan’s writing to Willa is an offer which is accepted when Willa reseeds the lawn. Jonathan must pay $150 to Willa. 4. Calvin uses fraud to induce Maria to promise to pay money in return for goods he has delivered to her. Has a contract been formed? If so, what kind? What are the rights of Calvin and Maria? Answer:
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This note was uploaded on 01/16/2012 for the course BLAW 3201 taught by Professor Fry during the Fall '08 term at LSU.

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Answers_to_Chapter_9_Problems - C HAPTER9 INTRODUCTION...

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