CONTRACTS REVIEW ANSWER FORMAT • Issue : Identify the legal issues based on the facts/case provided. • Rule : Discuss the law that a court would apply in determining the result of a legal issue. • Analysis : Apply the rule to the specific facts of the case. • Conclusion : Answer how a court would rule on the issue.
Example Is there an offer? • "Huyen, I would consider selling my motorbike to you for $1000.” – NO – Why? • Art. 390 Example • While alone in the shower, An says clearly and loudly, “I offer to sell Thuy my motorbike for $1000,” with the intention of selling his bike. – NO – Why? • Art. 390, 391(2)
Example • Vinh says to Tran, “I will sell you my hat for $5.” – YES – Why? Example • On Tuesday, Minh Nguyen sends an e-mail to Thanh Phan stating, “I will pay you $50 if you bring me my contract papers I left at your house by this Friday.” However, Minh accidentally sends the e-mail to Thanh Pham. On Wednesday morning, Thanh Phan sees the papers on her kitchen table and, unaware of the Minh's e-mail, takes the papers to Minh on the way to her work. Later that day, Thanh Pham sees Minh's e-mail and forwards it to Thanh Phan, their mutual friend. Thanh Phan now wants Minh to pay her, but Minh refuses. – Is there a valid contract? Why? – NO, no receipt of offer before Thanh Phan performed (VCC 391)
Example On Monday, Michael sends an offer by two-day postal delivery to Victoria stating that he will sell his Monet painting to her for $1000. On Tuesday, he reads in the news that the painting is worth $10,000. Hoping to withdraw his offer, Michael sends a notice of withdrawal to Victoria by the same postal method (two-day delivery). Because of bad weather, the offer and withdrawal are both delivered to Victoria on Thursday. – Can Victoria accept the offer? No (Art. 392) – What happens if there were no bad weather and delay of the offer? Victoria can accept the offer – What could Michael have done differently? Convey withdrawal by other means Example Same scenario, but instead, Michael calls Victoria to cancel the original offer before it has arrived by mail. During the conversation, Michael offers to sell the painting to Victoria for $10,000. Victoria says, “Let me think about it,” and hangs up. While Victoria is thinking, Michael turns on the TV and sees that the painting's value is now $15,000! Within 20 minutes of their last conversation, Victoria calls Michael back and immediately says, “I accept!” Michael replies, “For $15,000, you can have it!” • Is there a contract? See VCC 397(2) • What is Michael's statement, “For $15,000, you can have it?”
Example Is there an acceptance? • John makes an offer to sell his book to Adam if he pay $10 and brings the money to John’s house later tonight. Adam says, “$10 is great. I accept, but you have to pick up the money at my house.” – Answer: NO – Why? • VCC 395, 396 Example • Ryan says to Katie, “I will sell you my laptop for $500.” • Katie responds, “I accept, but you have to include the laptop cover.” – Is there an agreement? • Answer: NO – Why? What is Katie's response? • New offer/counter offer
Example Katie responds, “I accept, but you have to include the laptop cover.” • What if Ryan responds, “Deal!” – Is there an agreement? • Answer: YES - Who is the offeror? The offeree? Example On April 1, a motorbike store offered to sell a rare motorbike to a bike enthusiast for $50,000. The following day, the enthusiast wrote to the store owner, “I have decided to purchase the bike. A check for $50,000 is enclosed. I am leaving for Thailand for six months and will pick up the bike when I return. I will pay you to store the bike in an air-conditioned warehouse until then.”
Example On April 1, a motorbike store offered to sell rare motorbike for $50,000. Enthusiast wrote to store owner, “I have decided to purchase the bike. A check for $50,000 is enclosed. I am leaving for Thailand for six months and will pick up the bike when I return. I will pay you to store the bike in an air- conditioned warehouse until then.” What is the enthusiast's letter? (a) Rejection (b) Counteroffer (c) Acceptance, and owner MUST store the bike (d) Acceptance, and owner does NOT have to store the bike Answer: D Example 17-year-old Mary and 40-year-old Martin live next to each other at the Saigon Pearl Apartments. One November afternoon, Martin meets Mary in the lobby and says, “Mary, I'll offer you $100 if you clean 'my place' once a week in January.” By accident, Martin forgot to mention he was thinking about his huge villa outside the city, which he was moving into in December. Mary accepts the offer, thinking she was to clean his apartment. She then finds out that she misunderstood Martin and that he wanted to have the huge villa cleaned instead! Mary talks to Martin later that week, and says, “I was confused about your offer to clean 'your place.' Can you pay me more?” Martin says, “Sure. I'll pay you $200.” Mary then accepts. One week later, Mary decides that cleaning the villa is too much work and that she would rather catch up on sleep. – What are the issue: (1) Invalidity due to misunderstanding and (2) minor status
Example Joey visits his friend Chandler at his house with the intent of getting Chandler to sell his property in HCMC to Joey, who has special knowledge that the value will go up soon. When Joey arrives at Chandler's house, he finds Chandler delirious and very drunk after coming back from the club. Unbeknownst to Chandler, someone had slip a drug into his drinks as well. Even in his state, Chandler was unresponsive to Joey's attempt to get him to sign over his land. Joey then threatens Chandler that if he doesn't sign the agreement to sell the property, Joey will tell Chandler's wife, Monica, that Chandler had cheated on her with a friend, Phoebe. Chandler then signs the agreement before promptly passing out. The next day, Chandler finds the agreement next to his bed, and not knowing the law, believes he has no choice but to fulfill the agreement. Chandler sells his land, but after years of friendship, Chandler and Joey are friends no more. It's now two years later . . . Example • What are the legal issues in this problem? – Time Limit – Incapacity – Threat Can Chandler request the court to declare the transaction invalid? NO, Art. 136
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