Question

QUESTION1 Han drops by Luke's house and finds him working on his old Honda Odyssey in the driveway. Luke kicks the minivan and whines to Han, "Ahh, this old piece of junk isn't worth a tank of gas -you can have it." Han says Thanks kid! and the next day he calls to see when he can come by to pick it up. Luke stops him and says, "Well, gee, the old thing's working fine now Han, so I think I'm just gonna keep it.' Han goes to court and claims Luke is in breach of contract. Who will win and why? Han will prevail, because Luke promised him the minivan, and that created a contract. O Luke will prevail, because Han brought no consideration to the bargain, and so there was no contract. Luke will prevail, because Han never actually accepted his offer and so there was no contract. Han will prevail, because he tendered performance by showing up with his SUV the next day QUESTION 2 Myron, a homeowner, answers the telephone and hears a guy from Luscious Lawn Gardening Services, who offers him a total yard makeover for the low, low price of only $200. Myron responds, "No, thank you," and hangs up. Two days later, Myron returns home from work to find a lawn crew driving away from his house, a much better looking yard, and a bill for $200 sitting on the porch. When Myron calls the Luscious Lawn representative and tells her that he never agreed to the service, the representative says, "It looks much better, doesn't it? You got the service, so now you have to pay for it." Myron agrees that his yard does look much better, but he refuses to pay for it. Myron is later sued for breach of contract. What is the likely outcome of the lawsuit for breach of contract against Myron? Since this is a unilateral contract, Myron did not have to accept the offer. Therefore, he will be liable under the contract. Even though Myron did not agree to the offer, he will still have to pay for the service since he has benefitted from the service Since Myron admitted the service was of good quality, he has ratified the contract, and he will have to pay for the service Myron did not accept the offer, so no contract was formed. Myron will not have to pay for the service, no matter how good the quality, because he did not authorize it nor did he have the opportunity to reject it.

Answer 1

Ans 1)

The correct answer is option B. As Han did not bring any consideration from his side, there was no contract and only one side was benefitting. Thus, in the end, Luke will prevail.

Ans 2)

The correct answer is option D. As there was no contract formed in the first place, Myron would not have to pay for the services provided by Luscious Lawn Gardening Services even though the lawn looked much better afterward. Myron did not authorize or direct them to give a makeover to the lawn.