Question

Susan runs a store that sells furniture. One day, Brittney, a customer, walks in the store. After looking around the store, Brittney approaches Susan to buy an expensive wooden chair for $1,200. Susan gives Brittney a written contract for the purchase of the chair, which Brittney reads.

While Brittney is reading the contract, Susan tells Brittney, “If you sign now, we can also deliver to you a free luxury wooden table to go with the chair.”

Brittney tells Sarah, “Oh that would be perfect,” and signs the written contract for the purchase of the chair.

A week later, Brittney receives the chair by delivery, but not the table.

Upset, Brittney goes back to the store to confront Susan. Susan tells Brittney that, “Sorry, we ran out of luxury tables. And our written contract only mentions the luxury chair which we have delivered, and the $1,200 which you have paid.”

Susan refuses to give Brittney the luxury table.

Advise Brittney if she can enforce Susan’s oral promise to give Brittney the luxury table. Please only use the material in Contracts 2 to answer the question. Do NOT discuss terms and representations and/or conditions or warranties in your answer.

Please also note: a written contract, has been formed.   

USE ILAC METHOD

Answer 1

The Business Law ILAC method is very clear in such scenarios. As per contract law, any promise to keep an offer open for a particular amount of time needs to be countered by a consideration, distinct from the consideration for the offer. Essentially there would be two separate contracts, the first contract for the object in the question and the second contract to keep the offer for the first contract available and open for a specific time frame. These types of contracts are purposed at allowing an individual to make necessary investigations pertaining to the object being offered in the primary contract, before the person to whom the offer has been made, gets into this major contract. This is a way of guaranteeing that, if there are certain expenses involved with the investigation stands to benefit arising out of such investigations.

Application:

There are various legal cases as well as our understanding of the Business Law ILAC method that enhance our understanding of the judicial viewpoint in this matter.

Dickson v/s Dodds(1876) is a fine example of such scenario where the defendant Dodds make an offer to sell his house to the plaintiff Dickson and agrees to keep the offer open for a specified time duration. Before the expiration of the specified time duration however, the plaintiff learns that the defendant had sold the house to a third party. Upon confronting the defendant, the plaintiff expresses his willingness to accept the offer. The defendant however explains to the plaintiff express his willingness to accept the offer. The defendant however explains to the plaintiff that the property had already been sold and that his acceptance is immaterial. What must be remembered in this scenario is that, an important element for avalid contract is not only offer and acceptance, but also the presence consideration to begin with, thereby making this a void contract.

Conclusion:

Business Law ILAC method tells us that the essentials of a valid contract required every valid contact to posses certain features. An important element present in every contract is consideration. Due to promise made by Brittney and Susan to buy luxury tables was devoid of a consideration.