Business Law cases part 2

Business Law cases part 2 - CHAPTER9 STEINBERGV. ,1976...

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CHAPTER 9 STEINBERG V. CHICAGO MEDICAL SCHOOL Illinois Court of Appeals, 1976                                         41 III.App.3d 804, 354 N.E.2d 586 I.) FACTS:       Robert Steinberg applied for admission to the Chicago Medical School as a first-year  student and paid an application fee of $15.00. The school, a private educations  institution, rejected his application. Steinberg brought an action against the school,  claiming that it did not evaluate his and other applications according to the academic  entrance criteria printed in the school’s bulletin. Instead, Steinberg argues, the school  based its decisions primarily on nonacademic considerations such as family connections  between the applicant and his family to donate large sums of money to the  school. Steinberg asserts that by evaluating his application according to these  unpublished criteria, the school breached the contract it had created when it accepted  his application fee. II.) ISSUE:           Whether there was a breached contract? Yes.   III.) HOLDING:             Trial Court: granted defendant’s motion to dismiss. Court of Appeal: Dismissal  Reversed and case remanded. IV.) REASON:            The school had to fulfill its obligation since it accepted his application fee. The  school breached the contract because they rejected the application based on non- academic reasons, which they did not state in their bulletin. V.) RULE OF LAW:          There are (4) rules to be taken into account:    Mutual Assent : The usual method of  mutual assent is by offer and acceptance. Here, the offer is that the School will evaluate  the application according to the standards in their bulletin and the acceptance was that  Steinberg would pay the application fee of $15.  Consideration : Each party to a contract  must intentionally exchange a legal benefit. Here, the exchange of values was the $15  accepted by Chicago Medical School for evaluating an applicant based on their standards  to attend the school.  Legality of subject matter : The purpose of a contract must be not  criminal, tortuous, or otherwise against public policy. The subject matter here was legal.  Capacity : The parties to a contract must have mental understanding of what they are  entering into. Here, both parties entered this agreement understanding the terms in the  bulletin. Fox v. Moutain West Electric, Inc.
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This note was uploaded on 02/20/2012 for the course H/A 121 taught by Professor Alamo during the Spring '12 term at Morgan.

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Business Law cases part 2 - CHAPTER9 STEINBERGV. ,1976...

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