Week 3 discussion
DQ1 Fine Dining
You enter an expensive restaurant and are seated by the
hostess. A waiter brings you plates, knives, forks, napkins, and other set-ups
for dinner, including bread and butter and ice water, all of which you partly
consume. When you read the menu, you realize that the prices far exceed what you
can afford. You then make it clear that you do not intend to order a meal.
What type of contract (obligation) do you have, if any?
What factors and contractual elements will you consider in
assessing whether a contract was formed?
What if, instead, you read the menu and place an order, but
say nothing about agreement to pay. Is there a contract?
Also, assume there is fine print at the bottom of the menu
that states: 20% gratuity charged. $20.00 cover charge per table.
If you ordered dinner but didn’t see the fine print, what is
the effect?
Does this change in the facts alter your conclusion
regarding the scenario above? Why or why not?
What key factors and elements are at play?
DQ2 Distant Deal
Making
Maria, who lives in Seattle, sent Koji a letter via first
class mail, stating, “Koji, I think your 2003 Ford SUV is worth $20,000. I
will give you $20,000 cash for it.” Koji receives the letter, but believes
his car isn’t worth more than $14,000 due to the manner in which he drives the
vehicle and due to the weather in Florida where he resides.
Maria’s letter was mailed on Monday. When she didn’t hear
from Koji by Wednesday, she sent an e-mail on Wednesday afternoon with the same
message, and asked whether he received her letter. Koji received Maria’s letter
on Wednesday, but did not receive the e-mail until Friday afternoon, due to
server problems. In the meantime, Koji sent a fax late on Friday stating,
“Are you sure you still want to buy my car for $20,000? I accept your
offer.”
On Saturday, after some research, Maria decided the Ford SUV
was not worth what she thought. To make certain Koji would know this fact, she
sent Koji a letter via Federal Express stating, “Your SUV is not really
worth $20,000.” On Monday morning, Koji received the Federal Express
letter from Maria. Also on Monday morning, an hour later, Maria received Koji’s
fax at work.
Has a contract been formed here? Why or why not?
Identify and explain the stages of contract formation as
they occurred in this scenario and analyze them in this context from a contract
formation standpoint.
