Question

Business Law

Mickey has never liked Nucky so he decides to play a practical joke on him by pretending to sell him his home in the Cayman Islands. He tells Torrio that he has no intention of selling Nucky the home. Mickey approaches Nucky in a bar where Nucky is clearly intoxicated. The home is assessed at $10 million but he offers Nucky the home for $50,000. He winks and smiles at Nucky and Nucky accepts and the two shake hands. Nucky quits his job at Replay Baseball and moves to the Cayman Islands where Mickey informs him that he never had any intention of selling him the home. Nucky is moving furniture and trimming the hedges at the time. Of course, Mickey never mentioned that he owned a second home in the Cayman Islands that was recently destroyed in a hurricane.

1. Discuss whether there is a valid offer and acceptance and, further, discuss whether there is an enforceable contract.

Nucky decides that he will build a new home in Massachusetts with a large Jacuzzi. He compiles specifications for the construction of the home and sends it to several general contractors so they may provide bids/quotations. Part of the general contract includes a large plumbing sub contract. Boardwalk Construction submits a bid to Nucky for $20 million to serve as the general contractor. As part of its general bid, Boardwalk Construction factored $1 million for plumbing based upon a sub bid submitted by Atlantic Plumbing. There were two other bids for the plumbing work. Boardwalk Construction and Atlantic Plumbing have a falling out and Atlantic Plumbing no longer wants to work on the project. The two other bids were for $10 million each respectively.   

2. Discuss whether Atlantic Plumbing may revoke its offer. What are the competing arguments? Are there any other important facts?

Boardwalk Construction is working on small renovation project for Capone at his home. There is no written contract, but the two have orally agreed that Boardwalk will renovate Capone’s garage for $75,000. The two have agreed that construction is to be completed within one month. Two weeks later, Boardwalk approaches Capone and complains that the cost of nails has increased by 40% and that the cold weather has slowed the construction project. Boardwalk and Capone agree to increase the contact by $5,000 and to extend the completion date by three weeks. Each party agrees in writing to this change. Upon completion of the project, Boardwalk sends Capone a bill for $80,000.

3. How much does Capone have to pay? What are the competing arguments?

Boardwalk Construction has provided Eli a quotation of $20,000 to provide and install a high-end refrigerator. Boardwalk has provided this quote in writing and has stated that the quote is valid for 30 days and that Boardwalk may not revoke its offer. The next day, several of Boardwalk’s employees quit. Boardwalk sends a fax to Eli attempting to revoke its offer. Two seconds after Boardwalk sends the fax, it receives a fax from Eli accepting the offer.

4. Is there an agreement here? What are the competing arguments?

Answer 1

The contract is clearly not enforceable. It is because any of either party was not in his sound mind to make judgments. A document that has been signed under alcohol control may or may not be legitimate. A person who has entered into a contract while being intoxicated may attempt to break the contract with another side or may go to court and sue and cancel the contract. Such a contract is typically not voidable if the receiving side has cause to recognize the extent of the condition. The entirety of the situation would impact the decision of the Court. This must take into account other considerations as to whether the other side offered alcohol to the signing side to trick them or charm them into signing.

A company can revoke its offer only before the contract has been awarded. If any company decided to revoke after the contract has been awarded, then revocation might be seen as a breach of contract and thus is legally enforceable to pay for the damages.

Capone has to pay the whole $80000 because he agreed to all the conditions both verbally and in written form.

Under UCC it is generally accepted that the bidder might revoke its offer before the offer has been accepted. But here, the company has specifically mentioned that it may not revoke its offer. So, under normal circumstances, the company has to complete the project and deliver it to the Eli.