The following questions have multiple parts: they require an answer and an explanation of your answer.
1. S calls B and says, "I will sell my 1966 Mustang convertible to you for $3,000." B knows that the car is worth $4,000. B replies, "Would that include the trunk-mounted spare tire?" S hangs up without a word. B calls back in three days and says, "I'll buy the car for $3,000."
Is there a contract? Why or why not?
2. Penny found a wallet on a city street; looked inside to determine its owner and returned it to its true owner, Richard. A few days later she found out that Richard had offered a reward in the amount of $100 for the return of the wallet. She asks Richard for the reward money, but he refuses.
Is Penny entitled to the reward? Why or why not?
3. Jack is an accountant who works for the firm of Readum& Weep. Jack was approached by ImaPhool, who represents one of Readum's competitors, Numbers R Us. Jack was offered a substantial raise to leave his company and work for Numbers. When Jack's boss heard this he called him in and said, "If you agree to stay with us for at least five years, I promise that next year you will receive a promotion with a 50% raise, and a 5- year contract." Jack turned down the offer and stayed with Readum. Nine months later Jack was dismissed due to corporate downsizing.
Can Jack legally enforce his boss's promise? What theory or theories would Jack use? What defense(s) will the employer raise?