Question: Nature and Classification
Grant Borman, who was engaged in a construction project, leased a crane from Allied Equipment and hired Crosstown Trucking Co. to deliver the crane to the construction site. Crosstown, while the crane was in its possession and without permission from either Borman or Allied Equipment, used the crane to install a transformer for a utility company, which paid Crosstown for the job. Crosstown then delivered the crane to Borman's construction site at the appointed time of delivery. When Allied Equipment learned of the unauthorized use of the crane by Crosstown, it sued Crosstown for damages, seeking to recover the rental value of Cross town's use of the crane. Using the information presented in the chapter, answer the following questions.
1 What are the four requirements of a valid contract?
2 Did Crosstown have a valid contract with Borman concerning the use of the crane? If so, was it a bilateral or unilateral contract? Explain.
3 Can Allied Equipment obtain damages from Crosstown based on an implied-in-fact contract? Why or why not?
4 Should a court impose a quasi contract on the parties in this situation to allow Allied to recover damages from Crosstown? Why or why not?