Week 2: Question 1
Hager met a homeless man, Saul, on a downtown street. Feeling sorry for the man, Hager gave him his address, and said that if he would come to Hager’s home that evening at 8 PM, he would give him $20.00 and a suit of clothing. Later in the day, Hager met with misfortune on the stock market. As a consequence, he experienced a change of heart and refused to live up to his agreement when Saul arrived that evening at 8 PM. Has Hager broken a contract? (Post is due before 11 PM Thursday.)
Week 2: Question 2
Paulson made an offer to Zahira as follows: “I offer to sell you 150 shares of Microsoft. It closed yesterday at $170. If you will buy 10 shares at that price I will give you 20 days to decide whether you want to buy the balance at the same price.” Zahira agreed, and paid Paulson for 10 shares. Three days later the price of Microsoft went up to $195. Zahira decided to buy the other 140 shares, but when he called Paulson’s office, he learned that Paulson had been killed in an automobile accident just a few moments before he called. Two weeks later, Zahira notified Paulson’s executor of his acceptance. The executor claims that the offer to sell the remaining 140 shares was ended by Paulson’s death. Is he correct? Explain.
Week 2: Question 3
On August 15, Wong, in Chicago, faxed Chang, in Philadelphia, as follows: “I offer you 100 shares Fulton Incorporated stock at $211.00 each. I suggest you answer by Fed Ex today, because I must know your answer by 10 o’clock tomorrow morning.” Chang immediately upon receipt of Wong’s offer sent a reply by Fed Ex accepting the offer, depositing his letter in the Fed Ex box at 3 o’clock, August 15. This letter, in normal course, should have reached Wong by 9 o’clock the following morning. Unknown to either party the airplane carrying the mail was delayed by an accident, and Chang’s letter did not reach Wong until noon, August 16. In the meantime, Wong had sold his holdings at 11 o’clock, August 16. Chang brings suit against Wong for breach of contract. Can he recover? Explain.
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