Implied In Fact Contract Example

Summary

Simones situation with her seamstress is an example of an implied-in-fact contract, which is formed by the conduct of the parties rather than explicit words. In this case, Simones actions of showing the dress and the seamstress’s act of repairing it, followed by payment, created this agreement. In Lefkowitz v. Great Minneapolis Surplus Store, the court determined that the advertisement was an offer because it was clear, definite, and explicit. In Lucy v. Zehmer, the court ruled that Zehmers intoxication defense was unsuccessful, as his outward expression of intent suggested he comprehended his actions. Statements of future intent are generally not considered offers. Tinas offer terminated upon her death, as death generally terminates an offer. Barrys estate can exercise the option to purchase the equipment, making it an enforceable agreement. Intent is crucial in contract formation, and informal contracts focus on substance over form.

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In Lefkowitz v. Great Minneapolis Surplus Store, the court determined that the advertisement was not an offer because it was merely an invitation to any customer to come to the store and negotiate. True or false?
False. In Lefkowitz v. Great Minneapolis Surplus Store, the court determined that the advertisement was indeed an offer because it was clear, definite, and explicit, leaving nothing open for negotiation.
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Recall Lucy v. Zehmer. What was the result of Defendant Zehmer’s intoxication defense claim?
In Lucy v. Zehmer, the court ruled that Defendant Zehmer's intoxication defense was not valid. The court found that despite Zehmer’s claim of being drunk, he was still able to understand and conduct business, making the contract enforceable.
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Recall Lucy v. Zehmer. What was the result of Defendant Zehmer’s intoxication defense claim? Successful. Zehmer’s intoxication defense was successful because the facts proved he was too intoxicated to comprehend the consequences of his actions. Unsuccessful. Zehmer’s outward expression of intent to enter into the sale of the farm suggested he comprehended the consequences of his actions even though he may have been drunk. Unsuccessful. Since Zehmer did not submit to a breathalyzer test or other method of establishing his level of intoxication, the court had no evidence that he lacked capacity to enter into an agreement. Successful. Zehmer’s subjective intent was to retain his property and deceive Plaintiff Lucy, and since he disguised this intent by drinking with Lucy late into the night, the contract was unenforceable.
In Lucy v. Zehmer, the court ruled that Zehmer's intoxication defense was unsuccessful. The court found that Zehmer's outward expression of intent to sell the farm suggested he comprehended the consequences of his actions, even though he may have been intoxicated.
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A statement of future intent such as “I plan to sell my car” can be considered an offer so long as the offeror mentions a specific price.
A statement of future intent like “I plan to sell my car” is generally not considered an offer, even if a specific price is mentioned. Offers require an intention to be bound immediately upon acceptance.
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On March 1st, Tina offered, in writing, to sell James a parcel of land for $*,*. The offer stated that it will be held open until March 12th. On March 8th Tina died. On March 9th, unaware of Tina’s death, James mails an acceptance of Tina’s offer. Tina’s offer:
Tina's death generally terminates the offer unless the offer is irrevocable (which it appears to be since it was stated to be held open until March 12th). However, acceptance mailed before awareness of Tina’s death might still be valid.
Would you like more information on how the death of an offeror affects contract offers?
On March 1st, Tina offered, in writing, to sell James a parcel of land for $*,*. The offer stated that it will be held open until March 12th. On March 8th Tina died. On March 9th, unaware of Tina’s death, James mails an acceptance of Tina’s offer. Tina’s offer: Remains open as the duty to sell the land to James extends to Tina’s heirs and estate. Terminated prior to James’ acceptance only if James received notice of Tina's death. Remains open because the offer was in writing. Terminated upon Tina’s death.
Tina's offer terminated upon her death. Generally, the death of the offeror terminates the offer. Exceptions include irrevocable offers, but in this case, the offer does not appear to be irrevocable under Indiana law.
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Schmidt, the owner of a small business, has a large piece of used farm equipment for sale. He offers to sell it to Barry for $*,*. Barry pays $* for a *-day option to purchase the equipment. During this period, Barry dies, and Barry’s estate accepts Schmidt’s offer within the stipulated time period. This represents No agreement as Barry died, and death terminates an offer by operation of law An enforceable agreement as Barry’s obligation passes to his estate
This situation represents an enforceable agreement because Barry's estate can exercise the option to purchase the equipment within the stipulated time period.
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The element of _____ is of prime importance in determining whether a contract has been formed. A signature A written document Communication Intent
The most important element in determining whether a contract has been formed is Intent.
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Informal contracts are usually based on their substance (what is the contract actually about) rather than their form (is the contract in writing on the proper paper). True False
True. Informal contracts focus on the substance of the agreement rather than the formality. They can be oral or implied by actions.
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