Question

On April 2, 2014, Patty meets with Mary, the owner of Mary's Amazing Catering. Mary prepares all of the food herself, and after tasting many of Mary's samples, Patty says: You're the best! I want you to prepare the food and cake for my daughter Carly's May 9, 2015 wedding. I'll pay $75 per plate for the food - the fancy French menu - and $200 for the quadruple-layer cake. I have a tight budget - we're only having 100 guests. Let me know if that works for you. A day later, Mary faxes the following unsigned document: Mary's Amazing Catering Dear Patty, I will prepare the fancy French menu and quadruple-layer cake for Carly's wedding on May 9, 2015. The price is $15,000 for 150 guests - my minimum is $100 per plate and 150 plates - and $300 for the cake. Payment is due 60 days before the wedding. A week later Patty leaves a voicemail message for Mary: Thanks for the fax. I'm glad you'll be catering Carly's wedding. Mary receives the voicemail but does not respond. Part 1. Based on the information above, apply the common law of contracts and analyze whether Patty and Mary formed an enforceable contract. Patty tries to call Mary two weeks before Carly's wedding to finalize the menu. She discovers, however, that Mary is on vacation until June and cannot be reached. Panicking, Patty calls the only available local caterer, Tex's Best BBQ, to arrange for food for the wedding. On the wedding day, the guests love the food. However, Carly and her maid of honor, Kate, were very upset because Carly had always dreamed of a wedding reception with French cuisine, not a Texan barbeque. Part 2. Assume an enforceable contract between Patty and Mary. Based on the preceding paragraph, apply the common law of contracts to analyze (a) whether Carly has a valid claim against Mary, and (b) whether Kate has a valid claim against Mary. Assume that instead of going on vacation, Mary has taken on too much work. Two weeks before Carly's wedding, Mary calls her friend Tex (who runs Tex's Best BBQ) and tells him that if he caters the wedding in her place, she'll pay him the $15,300 she received from Patty. Tex agrees. Mary does not tell Patty of this change of plans. On the big day, Tex oversleeps and does not show up to the wedding. Part 3. Again assume an enforceable contract between Patty and Mary. Apply the common law of contracts to identify and analyze (a) any claims Patty may have against Mary and (b) any claims Patty may have against Tex.

Answer 1

Part 1:

A contract is an agreement enforceable by law. An agreement is an accepted offer. The question is whether there was an offer, and whether there was an acceptance of the offer. Both offer and acceptance, in order to culminate in valid contract, should be absolute and unconditional.

Patty had made an offer to Mary. Mary, through a fax message, makes a counter offer. One of the essential elements to the counter offer is the payment of $ 15,300 to be made by Patty at least 60 days before the due date of performance of the contract. Patty accepts through voice mail. Mary does not respond to the voicemail.

The question is : Did Patty make the payment as required? If the answer is yes, then there is an enforceable contract between Patty and Mary. If the answer is no, then Patty has not performed the terms of the offer, and therefore, no acceptance has taken place, and hence, there is no enforceable contract.

Part 2 :

a. Contracts are governed by the principle of privity, according to which, a stranger to a contract cannot sue upon the contract. The contract was between Patty and Mary, and Patty was not acting as an agent for Carly. Therefore, Carly is a stranger to the contract, and hence has no claim against Mary.

b. Kate, too, being a stranger to the contract between Patty and Mary, has no claims on Mary.

Part 3 :

a. Patty can bring action against Mary, not only for refund of $ 15,300 paid, but also for damages for breach of contract.

b. Patty cannot bring any action against Tex, as she is a stranger to the agreement between Mary and Tex.