Business Law Formation of A Valid Contract Paper

Talk it Out: Contracts

Betsy owns a business in South San Francisco, CA. Her friend, Walter, lived in Portland, Oregon. Over the years, Betsy often suggested to Walter that he move to South San Francisco and work for her. A short time ago, Walter decided to follow Betsy’s suggestion. He called Betsy and asked if she was still interested in hiring him. Betsy replied, “Of course. Get down here as soon as possible and we can see where you would fit in.” Walter agreed and told her that he would give notice at his current job and would be there by the end of the month. Walter gave notice at his job in Portland, shipped his furniture to South San Francisco, drove his car south, and rented a studio at a total cost of $10,000. When Walter called Betsy upon his arrival, she told him that she had just lost a major customer and had to impose rigorous cost-cutting. She, therefore, could no longer employ him. Walter tried for two months to find another job in South San Francisco but nothing was available. Walter’s previous employer was willing to rehire him, so he moved back to Portland paying another $5,000 in expenses.Did Betsy and Walter form a valid contract? In your answer, discuss offer, acceptance, and consideration.Did Betsy breach the contract?  If so, how?  What arguments supported by facts can Betsy raise?What damages, if any, does Betsy owe Walter? Explain

Unit Summary: Contracts

Question: Carl v. Zena

Zena placed an advertisement in a local newspaper: “Wanted: Someone to clean my four-bedroom, four-bath house (2500 square feet) once a week for the next month; pay $35 per hour. No interview or references necessary. The first to apply will be accepted.” She included her phone number.

Carl called her the next day and said, “I accept on the terms you have offered.”

Zena said, “You should know there was a mistake in the advertisement. The pay will be the same, but my house is actually 3000 square feet.”

Carl said, “Let me think a moment.”

Zena replied, “I have a call on another line, and I’ll call you right back.” When she called Carl two minutes later, Carl said, “I agree to clean for you on the terms you described. An extra 500 square feet does not matter to me.”

Zena told Carl, “I’m sorry, but I’ve changed my mind and I think I’ll do my own cleaning.”

Carl sues Zena for breach of contract. Is Zena liable to Carl? Use IRAC in your answer. Discuss all factors that determine if a contract is valid and discuss breach of contract.

Part two:

What was the most important legal concept, idea, or theory that you learned about this week? Please name, explain and give an example(s) of the concept, idea, or theory and explain why it was the most important.