Question

A. Michael, an accountant, is an acquaintance of Anna, the owner of “News & Brews” a café-store which sells newspapers, coffee and snacks. Most days, Michael spends five or so minutes in Anna’s store, looking at the front pages and usually buying one or two snacks. One afternoon, Michael goes into the store, looks at various items, and picks up a $2 cinnamon roll. There are a couple of other customers in line. Michael waves the cinnamon roll at Anna without saying a word and walks out. Is there a contract? If so, how would it be classified in terms of formation, performance, and enforceability?

B. On December 1, Anna sent Michael a letter, via overnight delivery, offering to employ Michael to review News & Brews’s tax situation for the current year for $5,000. In the letter, Anna stated that Michael had ten days to accept. On December 5, Michael sent an e-mail to Anna which said “The price for the tax analysis seems too low. Would you consider paying $7,000?” Anna received the message without responding immediately. The next day, Cheepskate CPA, a Michael competitor, offered to conduct the appraisal for $4,000. On learning of this offer, Michael immediately e-mailed Anna, agreeing to do the work for $5,000. Anna received this message on December 7.

Explain why Michael and Anna do, or do not, have a contract, also discussing the rules relating to revocation of offers which might, or might not, be applicable here.

C. Anna was chatting to Michael one afternoon when he was in the café. Anna complained she had difficulty retaining staff. Michael said his 17 year old daughter was taking time out before college and Anna impresses on Mike how important it is to her that anyone whom she hires stays in the job for a reasonable time. On Friday Mike signs a contract that requires her to work for Anna for six months, to start on Monday. On Saturday, however Mike tells Anna that she will not be starting on Monday and that she is going to work for another café, an Anna competitor.

Is Anna’s contract with Mike enforceable? Why or why not? Would your answer differ if Mike has commenced work, and then left in 7 weeks time saying she believed she was not bound by the contract?

D. Anna mentions to Michael that she is thinking of renovating the café. Michael says he has a client who specializes in that kind of work, Design & Fit Incorporated (D&F), and he introduces them. Anna hires D&F to renovate her cafe. D&F submits plans that Anna approves. D&F completes the major reconstruction, paints the interior, and buys the fixtures and furnishings. Anna rejects some of these items because they do not exactly match the plans, and subsequently refuses to allow D&F to finish the work or to collect payment.

Could D&F sue successfully for payment for the entire contract?

Answer 1

Answer A

There should a contract or terms and conditions , for employees of the store (there must be some discount or fixed amount of buying from the shop), but that has to be registered in system.

in formation of contract three main kinds are express , implied and quasi contract, in express contract (terms and conditions are written or verbally discussed ) whereas implied is something which is agreed between two parties as per the form of act, and quasi is where some agreements are not specified in contract and can be flexible between parties according to the situation.

so i think here they must be having Quasi contract.

According to performance there are two type of contracts executed and executory contracts, so its the way when you are signing any contract and not agreeing to any term or have obligations , in executed contract you can immidietly file a concern and in executory contract it may be cover later on.

enforcement of contract should be between the parties and it can only be considered if they are agreeing to the point.

i think here looking at the situation , when he took a product and just by sign of acceptance , so i think the contract is executory, quasi and enforced between two parties.

Answer B i think they don't have any contract in this case, because if Anna isn't agreeing to the Micheal than she has to talk and they have to discuss as per rules, but she didn't and instead offered to someone else the job, while if there was contract than micheal would have raised the concern about the agreement and can negotiate as per agreement.

and therefore Anna didn't given any notice to micheal and even micheal didn't raised obligation.

Answer C

I think the contract is not enforced because as per the contract there must be some agreement of terms and time period an employee can't deny and should be some penalty applied. In case if she left after 7 weeks mentioning that not she is not liable of contract, means that is defined the the contract and enforced.

Answer D

I think D&F are liable of the work they have done , and should not be paid for the remaining job or the items they used without approval of Anna, but it has to be mentioned in the contract that list of items and should be signed before starting of job , if its not mentioned anywhere an don such signature applied than they have to paid for what they have done till now.