BUS311_chapter_04

Promises to pay you 1500 per month for the rest of

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Unformatted text preview: hich she tries to revoke the offer, since she’s found someone who is willing to pay $800 for the rug. A. Was mail a proper way for Anita to accept? B. Did Bertha revoke her offer in a timely manner? C. Do they have a contract? D. Suppose Anita forgot to put a stamp on the letter. Has Bertha successfully revoked with her phone call later that same day? E. Assume Anita properly stamped and addressed her letter. What if she had written, “I accept and will buy the rug for $350.” Now do they have a contract? Case 3. Rebecca is planning to retire from her job at BCA Corp. Todd, the president of BCA Corp., tells Rebecca: “In consideration of your thirty years of faithful service to this company, BCA Corp. promises to pay you $1,500 per month for the rest of your life when you retire next week.” Rebecca gratefully accepts. A. If BCA doesn’t pay Rebecca the pension, can she successfully sue for breach of contract? B. What if Rebecca had not yet decided if she could afford to retire, and then Todd makes the promise? C. Suppose Rebecca had definitely already decided to retire, but Todd is concerned about replacing her. Now Todd offers, “In consideration of Rebecca’s thirty years of faithful service, BCA Corp. promises to pay her $1,500 per month for the rest of her life, provided that she continues to work for BCA for at least three more months.” Does this change the situation? Case 4. Carla contracts to drive Martin’s race car in an upcoming race in exchange for $1,000. Now Martin learns that the prize money has been increased, and he tells Carla, “If you win, I’ll pay you $1,500.” Carla wins the race. A. Does Martin owe her $1,000 or $1,500? B. Suppose instead Carla had contracted to sell Martin three race cars for $75,000 each. Now she tells Martin that because some components have gone up in price, she will only sell him the three cars if he pays an extra $10,000 per car. Martin isn’t happy, but he really wants the cars so he agrees. Is Martin bound to pay the ext...
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