Bargain Promises and the Mutuality Rule Interaction 1

Bargain Promises and the Mutuality Rule Self-Quiz

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Tony is an old man who has lived in the same house for forty years. Cornelius, an eighteen year old high school senior, and his family have lived next door to Tony since Cornelius was two years old. Tony has watched Cornelius grow up and, over the years, he has developed a special affection for Cornelius. Tony had been an avid car collector as a younger man and has a fleet of vintage cars from the 1950s and 1960s. The day before Cornelius’s first day of his senior year in high school, Tony promises that if Cornelius shovels the snow off of Tony’s sidewalk for the coming winter and mows Tony’s lawn for the coming summer, Tony will let Cornelius pick one of Tony’s cars as a graduation present. Cornelius shovels Tony’s walk during the winter and mows Tony’s lawn every week during that summer. However, at the end of the summer, before Cornelius has chosen a car, Tony dies. Tony’s estate refuses to allow Cornelius to choose a car. Cornelius sues Tony’s estate. The estate argues that shoveling snow and mowing the lawn was not enough of a price to pay for the car. The estate will:

Tony is an old man who has lived in the same house for forty years. Cornelius, an eighteen year old high school senior, and his family have lived next door to Tony since Cornelius was two years old. Tony had been an avid car collector as a younger man and has a fleet of vintage cars from the 1950s and 1960s. Tony is having some tax problems and is trying to sell some of his assets in order to reduce his tax burden. Tony calculates that if he sells a few of his vintage cars for $1 each, he will receive a tax break that is worth more that the car itself is worth. Tony explains his situation to Cornelius and offers to sell Cornelius his vintage 1957 Cadillac for $1. Cornelius agrees to buy the car for $1 but, before they make the exchange, Tony dies. Tony’s estate refuses to sell the car to Cornelius and Cornelius sues the estate. Cornelius will probably:

Tony is an old man who has lived in the same house for forty years. Cornelius, an eighteen year old high school senior, and his family have lived next door to Tony since Cornelius was two years old. Tony had been an avid car collector as a younger man and has a fleet of vintage cars from the 1950s and 1960s. Tony is having some tax problems and is trying to sell some of his assets in order to reduce his tax burden. One of Tony’s cars is a vintage 1957 Cadillac worth $35,000. On April 1st, Tony offers to sell the car to Cornelius for $32,000. Tony promises to keep the offer open until April 15th and Cornelius gives Tony $1 in exchange for that promise. On April 5th, Tony tells Cornelius that he has decided not to sell the car. On April 12th, Cornelius accepts Tony’s original offer of the car for $32,000. When Tony refuses to sell the car, Cornelius sues him. Cornelius will probably:

Cornelius is driving his new vintage 1957 Cadillac around his neighborhood in Battle Creek, Michigan, when he loses control of his car. The car rides up onto the sidewalk in front of Trixi’s lawn where her prize flowers are growing. Cornelius narrowly misses the flower garden and does no other damage to Trixi’s property. When Trixi sees how close her flowers came to being ruined, she threatens to sue Cornelius for assault, battery, negligent infliction of emotional distress, trespass to land and nuisance. Cornelius has only just graduated from high school and has no idea what half the words Trixi is saying mean. Cornelius is afraid that he could be in trouble so he promises to pay Trixi $5,000 if Trixi promises not to sue him. Trixi, who knows that Cornelius hasn’t done anything to her and that she has no claim against him, agrees. If Cornelius fails to pay Trixi the $5,000 and Trixi sues him for it, she will probably:

Ben and Jerry have opened a successful chain of ice cream stores throughout the United States. Hearing that Ben and Jerry are looking for a new milk supplier and knowing that being a supplier for Ben and Jerry would give them valuable exposure, Moo Juice approaches Ben and Jerry with an offer to become their new milk supplier. Moo Juice and Ben and Jerry enter into a contract under which Moo Juice promises to supply Ben and Jerry with all of the milk they need for $1 per gallon and Ben and Jerry promise to buy as much milk as they want to buy from Moo Juice at $1 per gallon. One week after the parties enter the contract, an epidemic of Mad Cow Disease breaks out, wiping out a large portion of the dairy industry. The price of milk spikes to $4 per gallon. Because of the increase in price, Moo Juice refuses to sell milk to Ben and Jerry at their agreed price. If Ben and Jerry sue Moo Juice, they will win:

Ben and Jerry have opened a successful chain of ice cream stores throughout the United States. Hearing that Ben and Jerry are looking for a new milk supplier and knowing that being a supplier for Ben and Jerry would give them valuable exposure, Moo Juice approaches Ben and Jerry with an offer to become their new milk supplier. Moo Juice and Ben and Jerry enter into a contract under which Moo Juice promises to supply Ben and Jerry with all of the milk they need for $1 per gallon and Ben and Jerry promise to buy all of the milk they need from Moo Juice at $1 per gallon. However, the contract also states that Ben and Jerry can terminate the contract at any time and for any reason. One week after the parties enter the contract, an epidemic of Mad Cow Disease breaks out, wiping out a large portion of the dairy industry. The price of milk spikes to $4 per gallon. Because of the increase in price, Moo Juice refuses to sell milk to Ben and Jerry at their agreed price. If Ben and Jerry sue Moo Juice, they will win:

Ben and Jerry have opened a successful chain of ice cream stores throughout the United States. Hearing that Ben and Jerry are looking for a new milk supplier and knowing that being a supplier for Ben and Jerry would give them valuable exposure, Moo Juice approaches Ben and Jerry with an offer to become their new milk supplier. Moo Juice and Ben and Jerry enter into a contract under which Moo Juice promises to supply Ben and Jerry with all of the milk they need for $1 per gallon and Ben and Jerry promise to buy all of the milk they need from Moo Juice at $1 per gallon. However, the contract also states that Ben and Jerry can terminate the contract at any time and for any reason, so long as they give Moo Juice two weeks notice. One week after the parties enter the contract, an epidemic of Mad Cow Disease breaks out, wiping out a large portion of the dairy industry. The price of milk spikes to $4 per gallon. Because of the increase in price, Moo Juice refuses to sell milk to Ben and Jerry at their agreed price. If Ben and Jerry sue Moo Juice, they will win: