HW #4 LGLS

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Temple University *

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5701

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Law

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Feb 20, 2024

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docx

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4

Uploaded by carlydphie

12–1. UNILATERAL CONTRACT. Rocky Mountain Races, Inc., sponsors the “Pioneer Trail Ultramarathon,” with an advertised first prize of $10,000. The rules require the competitors to run one hundred miles from the floor of Blackwater Canyon to the top of Pinnacle Mountain. The rules also provide that Rocky reserves the right to change the terms of the race at any time. Monica enters the race and is declared the winner. Rocky offers her a prize of $1,000 instead of $10,000. Did Rocky and Monica have a contract? Explain. (See  An Overview of Contract Law .) Rocky Mountains Races, Inc and Monica had a contract. As a matter of fact, they had a unilateral contract. There was a competition sponsored by Rocky Mountain Races, Inc., the “Pioneer Trail Ultramarathon”, in which competitors had to run one hundred miles from the floor of Blackwater Canyon to the top of Pinnacle Mountain. As advertised, the winner would get a prize of $10,000. However, because it was written in the rules, Rocky was able to change of the terms of the race at any time. As a result of this, the winner, Monica, won $1,000 instead of $10,000. Monica entered the competition with knowledge of a prize. She completed the act of running one hundred miles; therefore, she accepted and held up her end in the unilateral contract. Since Rocky reserved the right to change the rules of the race, Monica is not permitted to the prize of $10,000. She is entitled to whatever reward Rocky chooses.
12–2. PREEXISTING DUTY. Tabor is a buyer of file cabinets manufactured by Martin. Martin’s contract with Tabor calls for delivery of fifty file cabinets at $40 per cabinet in five equal installments. After delivery of two installments (twenty cabinets), Martin informs Tabor that because of inflation, Martin is losing money. Martin will promise to deliver the remaining thirty cabinets only if Tabor will pay $50 per cabinet. Tabor agrees in writing to do so. Discuss whether Martin can legally collect the additional $100 on delivery to Tabor of the next installment of ten cabinets. (See  Consideration .) Martin cannot legally collect the additional $100 on delivery to Tabor of the next installment of ten cabinets. In the contract, it states that Tabor will receive a delivery of fifty file cabinets at $40 per cabinet in five equal installments. Martin tells Tabor that after the delivery of the two installments, Tabor has to pay $50 per cabinet because of inflation. However, Martin has the pre-existing duty to provide the cabinets to Tabor. There should be no new consideration because Martin originally promised Tabor that he had to pay $40 per cabinet. If Martin had added an inflation clause in the contract earlier, than Tabor would have to pay the additional $100; however, an inflation clause was not added, and inflation can’t be enforceable in this case.
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