SCENARIO INSTRUCTIONS
You are a paralegal at a large law firm and have been assigned as a mentor to a new paralegal at the firm. The new paralegal has been asked to work on a contracts case and she wants to review some of the basics regarding the elements of a contract.
She asks you via e-mail if you could explain how the elements of a contract apply to some particular scenarios that she came across and whether there seems to be a valid contract:
1. Gilda Gecko approaches Trex Co. to build her new tiny house. Trex Co. says that it can build her tiny house starting April 1 and finish it within 6 months, for the price of $100,000. Trex Co. gives documents that have those terms set out to Gilda, already signed by Trex Co., and Gilda takes the documents home to decide whether to also sign them. The next morning, she makes her decision: “yes”, and then she signs the papers, sending them by overnight mail to Trex Co. However, several hours after she puts the documents in the mail, she regrets the decision and calls Trex to say “No.” Has the contract been accepted?
2. Sid’s Sporting Goods contacts Bouncy Co. by e-mail, asking for the prices of basketballs. Bouncy replies that each basketball costs $5 and sends a purchase order. In the purchase order, there are terms that state that payment is due with the order. Sid’s sends back the purchase order, asking for 40 basketballs at $5 each, for delivery on March 10. Sid’s also has put a line through the line about when payment is due, and then written in “payment due upon receipt.” Bouncy sends 40 basketballs to on March 10. Is there a valid contract?
Develop an e-mail response in the form of a memo in response to her with an explanation of the elements of contract formation, and then explain how those elements apply to each scenario.
For each scenario, be sure to consider whether the UCC or common law applies, because those involve some differences in the elements of contract formation.
