Chapter 47, Problem 18Q

Mary has lost her lamb. On Sunday, she ran an ad in the local paper offering $2000 to anyone who has information that would lead to the return of her lamb. On Monday, as he was leaving his village store on a four day business trip, Noah saw a lamb behind some barrels in the alley behind the store. Since he was late, he scribbled a note with the directionsBut Mary was not home. She wrote a note and stuck it under Mary's door. Mary was despondent about her lamb and spent Tuesday night commiserating with her. Mr Matilda's not returning home until Wednesday morning. Passing by the village store, however, she heard a little bleat and could hardly believe her eyes when she saw her beloved lamb standing in front of her. Nor did she notice that the lamb, hungrier than usual, ate Chili's note that was on the floor as they entered their house on Thursday. John remembered that he had seen a lamb at the village store earlier that week and hurried over to Mary's house, only to find the lamb already…

Mary's Stationery Store ordered via fax, 10 wood cabinets from Oscar's Office Furniture Co. at a cost of$ 1,000 per unit, with delivery within thirty ( 30 ) days at her place of business. She insisted in the fax that Oscar "take good care in handling the furniture so that it arrives safely, without any dents or scratches". Oscar advised that the goods would be shipped through PUG Transport Co. While the truck was en route with the cabinets, it crashed and all goods were lost. Oscar demanded Mary pay; Mary refused and insisted on a new delivery. Mary also ordered via fax, 500 red, white and blue ball point pens from Parker Pen Co. at a cost of $ 3 per pen and with delivery within 30 days. On the 25th day, ABC Delivery Co. delivered the pens and on inspection, Mary noticed she received 250 black pens and 250 silver pens. She also noticed that more than 50% of the pens had long scratches on their outer casings but all the pens wrote fine. She advised the truck driver that "if I didn't…

A offered to sell his automobile to B for P50,000. After inspecting the automobile, B offered to buy it for P50,000. This offer was accepted by A. The next day, A offered to deliver the automobile, but B, being short of funds, secured a postponement of the delivery, promising to pay A the price “upon arrival in this port of the steamer Helena.” The steamer, however, never arrived because it was wrecked somewhere off the coast of Samar. (a) Is there a perfected contract in this case? Why? (b) Is the promise to pay made by B conditional or with a term? Why? (c) Can A compel B to pay the purchase price and to accept the automobile? Why?

Mr. A wrote and mailed to Mr. B offering to sell his truck worth $10,500.00. In response, Mr. B replied by mail with a counteroffer of $8,000.00. Days later, Mr. B wrote again to Mr. A and said that he accepted the offer of $10,500.00 and the letter reached to Mr. A. Though there was an acceptance to the offer, but Mr. A decided to sell his truck to other interested party. 1. Is there a binding contract between Mr. A & B? If yes or no, please support your statement.

Liability for a Lost ATM Card Joshua Franz, of Oxford, Mississippi, earned $4,600 during the summer and put $3,000 of the money in a newly opened savings account for use during the school year. It is now November 4th and Joshua went to the bank to withdraw some cash. The teller informed him that there was only $2,100 in the account. When Joshua protested, the teller informed him that there had been three ATM $300 withdrawals from the account on the last day of the month in August, September and October. Joshua typically neglects to open the statements he had received on the third day of each month. When he got home he could not find the ATM card he had received when he opened the account in August and recalled that he had found his car door open in his parking lot in late August but had thought nothing was taken. When he opened the statements he saw the record of each of the withdrawals. He went immediately back to the bank to tell them of the loss. How much money will Joshua lose…

The ABC Company, located in Chicago, contracted to sell a carload of television sets to Dodd in St. Louis, Missouri, on sixty days’ credit. ABC Company shipped the carload to Dodd. Upon arrival of the car at St. Louis, Dodd paid the freight charges and reshipped the car to Hines of Little Rock, Arkansas, to whom he had previously contracted to sell the television sets. While the car was in transit to Little Rock, Dodd went bankrupt. ABC Company was informed of this at once and immediately telephoned XYZ Railroad Company to withhold delivery of the television sets. What should the XYZ Railroad Company do?

The H owned and operated a successful small bakery and grocery store. They spoke with L, an agent of Red Owl Stores, who told them that for $18,000, Red Owl would build a store and fully stock it for them. The H sold their bakery and grocery store and purchased a lot on which Red Owl was to build the store. L then told H that the price had gone up to $26,000. The H borrowed the extra money from relatives, but then L informed them that the cost would be $34,000. Negotiations broke off and the H sued. Can H win the case? Explain.

Barnes accepted Clark’s offer to sell to him a portion of Clark’s coin collection. Clark forgot that his prized $20 gold piece at the time of the offer and acceptance was included in the portion that he offered to sell to Barnes. Clark did not intend to include the gold piece in the sale. Barnes, at the time of inspecting the offered portion of the collection and prior to accepting the offer, saw the gold piece. Is Barnes entitled to the $20 gold piece? Explain

David M. Fox was a distributor of tools manufactured and sold by Matco Tools Corporation (Matco). Cox purchased tools from Matco, using a credit line that he repaid as the tools were sold. The credit line was secured by Cox’s Matco tool inventory. In order to expedite payment on Cox’s line of credit, Matco decided to authorize Cox to deposit any customer checks that were made payable to “Matco Tools” or “Matco” into Cox’s own account. Matco’s controller sent Cox’s bank, Pontiac State Bank (Pontiac), a letter stating that Cox was authorized to make such deposits. Several years later, some Matco tools were stolen from Cox’s inventory. The Travelers Indemnity Company (Travelers), which insured Cox against such a loss, sent Cox a settlement check in the amount of $24,960. The check was made payable to “David M. Cox and Matco Tool Co.” Cox indorsed the check and deposited it in his account at Pontiac. Pon-tiac forwarded the check through the banking system for payment by the drawee bank.…