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Yahn & West Text - case studyPreview
LVC – Fall 2005
Business Law
Chapter 9 Case Studies
Yahn & West Text
9-1A. (The answer below was drafted from your text in Chapter 9—Pages 199–204)
The facts presented here indicate the presence of all the elements necessary for a valid contract. We have a offer and acceptance, consideration is exchanged (a candy bar for $1), and both parties have capacity (no issue of diabetic coma), the selling of the candy is legal, and there is no particular form required for this type of contract. Thus, a contract exists and for the reasons given here is classified as valid, enforceable, and informal. In addition, this is a classic case of an implied-in-fact contract. There is no explicit agreement between the parties, but rather an agreement is implied by McCleskey’s action of waving the candy bar and by his past conduct (his course of performance). By his conduct and actions McCleskey is telling Miller that because the store is crowded, he will pay for the candy bar later (and this is understood). The contract is also bilateral (as opposed to unilateral), because Miller impliedly promises to sell the candy bar to McCleskey in exchange for McCleskey’s implied promise to pay. The contract is partially executory, as McCleskey has engaged to pay for the candy bar in the future. Because the contract is for a legal purpose, both parties have capacity, and reality of consent is not an issue, the contract is neither voidable nor void.
9-2A. ((The answer below was drafted from your text in Chapter 9—Pages 202–204)
Janine in the Hospital – Implied in Law
If Janine were unconscious or otherwise incapable of agreeing to a contract while she was in the hospital, as presumably she was in the situation described in this problem, she would not have been able to contract for the nursing services that she received. She did obtain a substantial benefit from the provision of those services, however, in this situation, to prevent Nursing Services from recovering from Janine for the services it provided would, in effect, unjustly enrich Janine at the expense of Nursing Services. To prevent injustice, in this and similar cases the law may impose a “fictitious” or implied-in-law contract on the parties. Under this implied contract (called a quasi contract), Nursing Services would be able to recover the value of the services that it provided (much like the scenario we discussed in class addressing the Doctor rendering services to the unconscious person of the roadside).
Janine is sent Home – Implied In Fact
If Janine were aware of the provision of services after she was sent home and could reasonably have refused those services, Nursing ...
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