1. Harvey is a resident of California. Harvey files an action in Orange County Superior Court, California against Microscoft alleging $100,000 in damages in a claim arising under the federal securities laws. Microscoft is properly served in California. Microscoft requests that its attorney file a Demurrer for lack of subject matter jurisdiction. Discuss whether the court should or should not dismiss the case, and why.
2. Marvin, a carpenter, and good friend of Clutz's, told Clutz, that he would be happy to help Clutz build his new garage. When the garage was completed, Clutz said to Marvin, "I really appreciate your help. I'll help you paint your house in return." Marvin said, "thanks, I accept your generous offer." However Clutz later changed his mind and refused to help Marvin paint his house. Is there a contract between Marvin and Clutz?
3.Thompson's Dry Goods store published the following advertisement in the Silver city Morning News on Monday March12, 1996.
"8 Brand New Stetson Cowboy Hats Beaver Felt, Selling for $72.50..... out they go..... Sat. March 17th Each .... $5.00.
1 Navajo Turquoise Necklace..... worth $125.000 now selling for 40.00... "FIRST COME, FIRST SERVED"
On the following Saturday, Roy was the first person to arrive at the store and demanded the necklace. The Store clerk refused to sell it to him because it was a "house rule" that the sale was intended for women only. If Roy brings a lawsuit against Thompson's dry Goods for their refusal to sell him the necklace, alleging a contract existed, who should win and why?
4. Because year end car sales were slow, Mighty Motors needed to sell some of its inventory to make room for the new 1996 model cars. Mighty Motors placed the following advertisement in the newspaper:
"BUY NOW! Buy a 1995 United Motors car now and when the 1996 models come out, we'll trade even for your '95. Your 1996 will be the same model, accessory group etc. as the '95 that you buy now. A sure thing for you - a gamble for us but we'll risk it!
HURRY! This offer good only during September. Buyer responsible for taxes and license fees."
Mr. and Mrs. Johnson saw the ad and visited Mighty Motors. On September 20, they bought a 1995 United Motors Stingbird. When the 1996 cars came out the Johnsons went back to Mighty Motors and requested that Mighty Motors trade in the Stingbird for a new 1996 Model. Mighty Motors refused stating that the Johnsons had not notified Mighty Motors in September that their purchase was being made on the terms of the advertisement. The salesman pointed out that the Johnsons had not even mentioned or discussed the ad. Mr. and Mrs. Johnson sue requesting that the court order Mighty Motors to accept the car in trade for a 1996 model. Mighty Motors alleged that the advertisement was not intended as an offer but was an invitation to make an offer and to come into the dealership to bargain. Do you agree? Explain fully.
5. Richards wrote Flowers on Jan 15, "We would be interested in buying your Lot on Gravel Drive, Oakland California, if we can deal with you directly and not through a realtor. If you are interested, please advice us by return mail of the price you would expect to receive." On Jan 19, Flowers responded, "Thank you for your inquiry regarding my Lot on Gravel Drive. As long as your offer would be in cash, I see no reason why we could not deal directly on this matter. Considering what I paid for the lot and the taxes that I have paid, I expect to receive $400,000 for this property. Let me know what you decide." On Jan. 25, Richards telegrammed Flowers, "Have agreed to buy your Lot on your terms." When Flowers later refused to convey the property to Richards, Richards sued Flowers for breach of contract. Did the parties have a contract?
6. On July 1, after several weeks of negotiations, Mary Smith sent Tom Jones a letter offering to sell him a specific vacant parcel of land for $200,000. The land had been appraised at $250,000. Mary had inherited the land along with several apartment buildings in the immediate vicinity. In the letter, Mary specifically set forth all the material terms of the sale and stated that she would give Tom 30 days to accept the offer. On July 15, Tom sent Mary a fax that included the following statement: "The price for your property seems too high, would you consider taking $175,000?" Mary never responded to the fax. On July 28 Susan made a written offer to Mary to purchase the property for $200,000. On July 29th, upon learning of Susan's offer, Tom hand delivered a signed letter to Mary stating, "I will purchase theproperty for $200,000, although I feel I am paying too much. I would like a 90 day closing period, but if you prefer I will close in 60 days as stated in your offer."
During the course of the negotiations leading up to the July communications, Mary expressed concern to Tom that a buyer of the land might build apartment units that would compete with those owned by Mary in the immediate vicinity. Tom assured Mary that he intended to use the land for a small shopping center. Because of these assurances, Mary was willing to sell the land to Tom. When Mary and Tom signed a purchase and sale agreement, it did not include any promise by Tom not to use the land for apartment units. Contrary to what Tom told Mary, Tom had already contracted conditionally with Rolf to build a 48-unit apartment development on the vacant land.
In order to complete the transaction, Tom needed to borrow $160,000 from local bank. However, local bank was not convinced that Tom was a good credit risk. Therefore, to ensure that the bank would make the loan, Tom's very wealthy friend, Forbes, called the bank and stated that if Tom could not fully repay the loan, he would. The next day, local bank entered into an agreement with Tom to loan him the money. Several days later, Forbes went to the bank and signed an agreement to guarantee the loan. The transaction was completed within the 60 day period. Several weeks later, Mary
wants to get out of the deal. Is the offer by Mary contained in the letter of July 1 revocable or irrevocable for the 30 day period?
7. On June 15, Peters orally offered to sell a used lawn mower to Mary for $125. Peters stated to Mary that he would keep the offer open until June 20. On June 16, Peters received an offer to purchase the mower for $150 from Barry, Mary's neighbor. Peter accepted Barry's offer. On June 17, Mary saw Barry using the lawn mower and was told the mower had been sold to Barry from Peters. Mary immediately wrote Peters to accept the June 15 offer. Is there a contract between Peters and Mary?