Ren, a sales representative of an Electric Supply Inc made a demo for a new high-speed Auto[1]analyzer

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Question:

Ren, a sales representative of an Electric Supply Inc made a demo for a new high-speed Auto[1]analyzer for Glen, the owner of a car repair service shop. The price of the Auto-analyzer was $3,500.00. Though the Auto-analyzers are useful, but the price is too expensive. Glen said to Ren that he might consider if he will lower the price to $2,500.00, but Ren refused and took the device. One week later, an Auto-analyzer arrived at the shop with a letter from Ren stating that "when I reported that how impressed you were with our device to the manager, the manager said it would be worth selling one ever at a loss just to break into the market in your city. We know what an excellent reputation you have, and it would be a good move to have our product in use in your shop. Our price is reduced to $3,000.00 only for your company. If we didn't hear from you in ten (10) days, we shall assume that you have accepted this exceptional offer and we expect payment of our invoice. Glen did not respond and simply allows the device to sit idle beyond ten (10) days.

Issue: Can silence be sufficient mode of acceptance? Please state your reasons

Case 2

The CS Ball Company made a product called the "smoke ball" which claimed to be a cure for influenza and a number of other diseases. The Company published advertisements claiming that it would pay $150.00 to anyone who got sick with influenza after using its product, according to the instructions set out in the advertisement. The $150.00 reward will be paid by CS Ball Company to any person who contracts the increasing epidemic influenza colds, or any disease caused by taking cold, after having used the ball three times daily for two weeks, according to the printed directions supplied with each ball. Showing its sincerity, the company deposited $1M with the Alliance Bank, Regent Street where they can claim their reward. When Mrs. Clark saw the advertisement, she bought a smoke ball and used it three times daily for nearly one month until she contracted the flu. She brought a claimed from the CS Smoke Ball Company, however, the company ignored her two letters. On her third request for the reward, the company replied with an anonymous letter that if it is used properly, the company had complete confidence in the smoke ball's efficacy, but to protect themselves against all fraudulent claims, they would need her to come to their office to use the ball each day and be checked by the secretary. Mrs. Clark sued the company on its promise to pay $150.00.

Issue: Does the performance of the conditions as advertised constitute acceptance of an offer? Please state your reason

Case 3

Mr. A has bought a new 90-HP out-board motor. He told his friend, Mr. B that he will give him his old 35-HP motor as soon as the new one arrives. Mr. B has a small boat but this small boat cannot accommodate the old engine. Mr. B needs to modify his small boat, but he will have to spent expensive modification. With Mr. A's suggestion, he bought a new boat. When the new 90-HP motor arrived, Mr. A changed his mind and decided to sell the old to other party.

Issue: Does there a contract between Mr. A & Mr. B? Please state your reasons. Hint. Please research Injurious Reliance (Equitable Estoppel)

Case 4 Dr. John and Mrs. Jane Marquez were generous philanthropists of BG Hospital. Dr. Marquez, who bequeathed $2.8Million for the hospital, had been recognized by naming the hospital's coronary and cardiac diagnostic unit after him. The city is on the process of restructuring health care system. In response, the BG Hospital Foundation launched a campaign to raise funds to expand the hospital. Mrs. Marquez, the wife of the late Dr. John Marquez, was approached by the hospital's Chief Executive Officer to become a potential lead donor for the campaign and the suggested amount was $1Million. The foundation presented with a formal proposal that outlined the project and the hospital's interest in honouring her and the memory of Dr. Marquez by naming the new critical care unit after them. Of course, the renaming requires approval from the board of trustees. Mrs. Marquez seek the advice of her accountant and later signed the document pledging to donate $1Million over a five-year period to the BG Hospital Foundation. She made the first instalment of $200,000 and died a month later. After Mrs. Marquis died, her estate refused to pay the balance of $800,000 owing on the pledge.

Issue: Is the pledge document a contract and enforceable in law or merely "a naked promise"

Case 5 John has a lending company. In his letter mailed on September 15, he offered to sell his business to Peter for $20,000.00. The letter was received by Peter on September 20. On September 25, Peter sent his letter of acceptance in which John received on September 28. However, on September 23, John had decided to withdraw and mailed a letter to Peter revoking it. The letter was not received until September 29.

Issues: Did the contract form? When?

Case 6 A father made a will leaving everything to his infant son. In his will and testament, he appointed John as his executor, in the event of his death. As executor, John is responsible to administer his estate on behalf of his son. Prior to the death of the father, he bought a piece of land using a mortgage and began building a cottage on this land. Prior to its completion, he died. Upon his death, John then acts as the son's guardian and administrator of the estate on his behalf. John was not paid for this service. As a guardian, he spent a large amount of money in educating him, completing the cottage, and paying off the mortgage. However, the estate turned out to be insufficient, so he used some of his own money and took out a loan. When the son reaches to a maturity age, he assented to John's loan and promised to pay it off. He later married, and his wife repeated this promise. However, when the loan became due the couple refused to pay. They argued that there was no binding contractual agreement between the parties because John had not provided consideration for their promises to pay.

Issue(s): Had John provided good consideration for the couple's promises to pay off the loan