EXAM # _________

Examination Graduate Contracts

Fall 2010 Professor Dickinson

This is the examination for the Fall 2010 Graduate Programs course in common law contracts. This examination consists of three parts (I, II, III) each consisting of a single statement of facts followed by a question or questions calling for the examinee’s response. You are to consider the question presented, formulate a response to the question propounded and then record your response. These are the rules:

1) You will have three hours within which to consider and record your responses unless the Registrar’s office has established a different time period.

2) If you choose to write your response you must do so in ink and on the right hand side only of the examination books provided. Whether you write or type via EBB be sure to designate each response by the part and number of the question you are addressing in your response. Put your examination number on your exam, on the cover of each examination book you choose to submit or on the top of the first page of your typed response if you choose to type.

3) This is a closed book, notes etc exam. You cannot have any materials with you during the examination except for pens, the scratch paper provided by the proctor and, if you choose, a single purpose English-first language (not including English) dictionary.

4) Please take the time to be deliberate in considering your response. Impulsive responses will not successfully address the problems this examination presents for your solution.

Part I

Jones mailed the following offer to Smith. “I, Jones, hereby offer to sell my property to you, Smith, for $125,000.00. The property consists of a house and lot at 361 Verona Avenue. Terms to be $25,000.00 down payment, balance paid in equal payments over the next 25 years. Must advise immediately if you accept.” Jones’ offer is mailed on December 3, 2010, Smith received the letter on December 7, 2010. Smith sent the following letter to Jones on December 10, 2010: “I have received your offer. Do you think you would be willing to consider a cash purchase for $100,000.00?” On December 12, 2010, Jones replies:” NO!” Smith receives the December 12 letter and immediately sends a letter stating: “I accept your original offer of December 3, 2010.”

1) Is there a contract between Jones and Smith? If Yes, explain why. If not, explain why not.

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Part II

John’s favorite aunt has just died. Her passing has caused John to recall a time when he was very young; when his aunt made a great fuss over him about presenting him with some money. He remembered at the time, Aunty had no money, so she said that John could have the money when she died and her things were sold, and put a piece of paper in John’s hands saying he should take care of it because it would be worth something some day. Grieving all the way, John undertook a search for the long forgotten paper.

John found the paper. It was 2 inches by 6 inches with formal printing on one side that read: “for value received pay__1___ __2___ __3___ “in Aunt’s hand writing, the word’s “John nephew” were written in blank 1, and “$5,000.00 upon my death” were written in blank 2. On blank 3 appeared Auntie’s signature.

John took the piece of paper to the executor (legal administrator) of his aunt’s estate immediately after the funeral. The executor told John he would not pay him the money even if the estate had that much money in it. When John blustered and complained the executor said, “So, sue me.”

John has taken the executor’s challenge up and brought an action claiming that the paper is evidence of an enforceable promise to pay him $5.000.00, made by his Aunt to him, that her estate must honor. The executor defends claiming that the estate has no legal obligation to keep the promise evidenced by the paper. For this reason the executor claims he would violate his duty to protect the estate if he paid John.

Both John and Executor agree that the only witness (John’s aged father) to the hand over of the paper by Aunt to John told the absolute truth when he testified:

“My sister [Aunt] saw John come into the room and said’ isn’t he a nice boy?’ I answered ‘Yes he is getting along nice in school.’ She told me that she was ‘going to take care of that child; that she loved him very much.’ I said, ’I know you do Tillie, but you know this take care of him idea is just talk.’ She said ’I’ll show you it isn’t’ and took out the form (the paper) right there and filled it out just like it is there. She asked me if it was right. And I said, ‘I guess so’ and then she signed it and gave it to John, telling him he must take care of it because it could be worth something some day.”

1) The Executor has made a motion that John’s claim for the $5,000.00 be dismissed on the ground that John has no legal right to recover in the claim made by him.

You are the judge, how should the court (you) rule on the Executor’s motion? Write the Court’s order either dismissing or granting the Executor’s motion. Be sure to articulate the reason(s) for your decision in the order. _________________________________________________________________

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PART III

1) Ingred sold Grace a new gold watch for $750.00, delivery on October 1. On October 1, the market price is $600.00. Grace repudiates on September 28. How much may Ingred recover?

2) Assume that Grace took delivery of the watch on October 1, but that it was stolen from her home on October 2. Grace refuses to pay Ingred. What may Ingred recover?

________________________________________________________________________ End of examination

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