Assignment:
Answer Both Case studies in essay form. Your answer to each case must be 1 page for each case. Be sure to proofread your work carefully for correct spelling, grammar, and clarity of expression.
Please answer the questions posed at the end of each case study in essay form. Each essay will be judged on your capacity to present strong, logical discussions that support your conclusions.
The questions in this assignment require critical thinking. Take the time to determine what you need to include in presenting a thoughtful, complete response.
Case Study 1
Lamar Smunt, eccentric millionaire, sends Casmir Roginsky, famous portrait artist, a letter offering to pay Roginsky $500,000 to do a portrait of Smunt’s mother. Roginsky sends back a letter that says: “I’ve had the misfortune of seeing your mother and would need $750,000 before my artistic sensibilities would allow me to undertake such a harrowing project.” Three hours later, after reflecting upon the sad state of his finances, Roginsky telephones Smunt and says: "I’d be delighted to paint your lovely mother. Destroy my letter without reading it. It was sent by mistake.” Smunt disregards Roginsky’s instructions and reads Roginsky’s letter when it arrives. He becomes enraged at the insult to his mother and refuses to allow Roginsky to do her portrait. Roginsky files a breach of contract suit against Smunt.
Discuss his chances of success.
Consider the following topics:
- Offer and Acceptance
- When can an offer be accepted?
- When can an offer be revoked?
- The “Mail Box Rule”
- Traditional Acceptance under the Rule and a more modern view under the UCC and the Restatement.
Case Study 2
Wombat entered into an oral employment contract with Tony’s Toy Company. Tony’s has orally agreed to hire Wombat for three years as a district manager. Wombat quit his job, sold his house, and moved his wife and five children to another state in order to start the new job. One month later, Tony’s informed Wombat that things weren’t working out and that his job was terminated.
- Is this contract enforceable under the Statute of Frauds? Remember to carefully read the Statute of Frauds as it specifically relates to oral contracts.
- Is it enforceable under any other theory under which Wombat may recover damages from Tony’s Toy Company?
- Are there ethical considerations that apply to this case?