Elle was the owner of a soon-to-be-opened pastry shop, Elle’s Pastries, wrote to Sanchez Sugar, a large supplier of premium confectioner’s sugar, about placing a standing order for sugar to meet Elle’s Pastries’s frosting and other needs. By return mail, Sanchez Sugar offered Elle’s Pastries a discounted price of $5 per five-pound bag—$3 per bag less than its regular price—based on the parties’ “many years of pleasant business association.” Because Elle’s Pastries had not done business with Sanchez Sugar before, she realized that Sanchez Sugar had confused her shop with another pastry shop having a similar name. However, Elle’s Pastries kept quiet about the mixup and placed an order for 200 bags of sugar at the discounted price of $5 per bag. Shortly before it shipped the sugar to Elle’s Pastries, Sanchez Sugar discovered that it was mistaken about the identity of the shop owner and that the order was for a new pastry shop that was opening soon. It sent an overnight letter to Elle’s Pastries noting its mistake and stating that the price of a bag of premium confectioner’s sugar was $8 per bag. Elle’s Pastries, whose grand opening was coming soon, sent the supplier $1,600 and received the 200 bags of confectioner’s sugar in a timely manner. Immediately thereafter, Elle’s Pastries filed suit against Sanchez Sugar for $600 (the difference in price between cost of the sugar at $5 per bag and its cost at $8 per bag) plus any consequential damages. In her pleadings, Elle’s Pastries asserted that Sanchez Sugar violated its contract to sell the sugar at $5 per bag and that it had forced her to pay the higher amount knowing that she needed the sugar for her pastry shop to open.Will Elle’s Pastries win its suit?

Dylan’s Dairy regularly supplies milk to local grocery stores located in the same city. Fresh Groceries, which had not previously done business with Dylan’s Dairy, sent a written order to Dylan’s Dairy for 50 cases of whole milk at the wholesale market price of $10 per case for prompt shipment. The warehouse clerk at Dylan’s Dairy negligently shipped 50 cases of low-fat milk instead.When the milk is delivered at Fresh Groceries by a common carrier, which of the following is the most appropriate statement of the parties’ rights and duties?

Danny Developer sent Twinkleberry Farms a letter that stated, “I will pay you $2,100 an acre for your land.” Twinkleberry Farms’s reply letter stated, “We accept your offer.” Although Twinkleberry Farms did not know, Danny Developer had intended to offer only $2,000 per acre but had mistakenly typed “$2,100.” Both parties were aware that similar land in the area had been selling between $2,000 and $2,200 per acre. Which of the following states the probable legal consequences of the correspondence between the parties?

A buyer for Mustards, a discount department store chain in the South, and Not LV, a seller of imitation French handbags, entered into a contract whereby Not LV would sell to Mustards 1,000 of a specific brand of its handbags for a price of $20 apiece, with Not LV delivering the handbags “F.O.B. Atlanta CSX Terminal.” The handbags were sent by rail to Atlanta; midway through the trip, the freight car that was carrying the handbags was struck by lightning and caught fire, destroying the handbags.If Not LV brings suit against Mustards, which has refused to pay the contract price for the handbags, Not LV will:

Esteban planned to open a new restaurant but first he needed to tear down an old building he owned and replace it with a new structure. Esteban obtained a bid of $10,000 to demolish the old building and another bid of $90,000 to construct the new structure. Esteban asked F1 Bank for a $100,000 loan. After reviewing the plans for the project, F1 Bank, in a signed writing, promised to lend Esteban $100,000, secured by a mortgage on the property and repayable over 10 years in equal monthly installments at 10% annual interest. Esteban promptly accepted the demolition bid and the old building was removed, but F1 Bank thereafter refused to make the loan. Despite diligent efforts, Esteban was unable to obtain a loan from any other source.  Does Esteban have a cause of action against F1 Bank?

Lillie Landlord heard that MBK Homes was looking for old buildings to purchase and raze to make room for new development. On June 1, Lillie Landlord sent a letter to MBK Homes stating, “I own two adjacent apartment buildings that might meet your needs. One is located on 123 Fox Street and the other property is right behind it on 123 Farm Street. I will sell you one or both of the apartment buildings for $250,000 each. This offer remains open until July 1.” On June 15, MBK Homes emailed Lillie Landlord, “Accept your offer with respect to the apartment building on Fox Street.” On June 18, MBK Homes emailed Lillie Landlord, “Will also take the building on Farm Street.” On June 22, Lillie Landlord discovered that she did not have good title to the Farm Street property. Which of the following would provide the best legal support to Lillie Landlord’s contention that she was not liable for breach of contract as to the Farm Street property?

Wesla, an automobile manufacturer, entered into a contract with Gooyear, a tire distributor. The contract provided that Gooyear would deliver to Wesla 500 tires on the 1st of each month for $5,000 per shipment, with payment due upon receipt.Wesla and Gooyear properly fulfilled their contractual obligations for two months. The day after the third tire delivery, Gooyear’s president visited Wesla and found the automobiles produced with his company’s tires to be a “disgrace.” To protect Gooyear’s reputation, the president announced that he will not send any additional tire shipments. Wesla immediately brought a breach of contract action against Gooyear.Which party is likely to prevail in the breach of contract suit?

Stanley agreed in writing to deliver to Target 500 described tumblers at $20 each F.O.B. Stanley’s place of business. The contract provided that “neither party will assign this contract without the written consent of the other.” Stanley placed the tumblers on board a carrier on January 30. On February 1, Stanley assigned all his rights under the contract to a third party in a signed writing. Stanley did not request and did not get Target’s consent to this transaction. On February 2, the tumblers, while in transit, were destroyed in a derailment of the carrier’s railroad car. In an action by Target against Stanley for breach of contract, Target probably will:

Owen, the owner of Cruise Cars, had Amelia, an adult daughter who needed a car in her employment but had only $3,000 with which to buy one. Owen wrote to her, “Give me your $3,000, and I’ll give you a car from our lot that has been used as a demonstrator.” Amelia thanked her father and paid him the $3,000. As both Owen and Aemlia knew, a demonstrator is reasonably worth $10,000. After Amelia had paid the $3,000, but before the car was delivered to her, one of the sales staff at Cruise Cars sold and delivered the same car to a customer for $10,000. Neither the salesperson nor the customer was aware of the transaction between Owen and Amelia. Does Amelia, after rejecting a tendered return of the $3,000 by Owen, have an action against him for breach of contract?

Carlos, a student at the local community college whose sole focus in life was music, inherited Thunder, a thoroughbred whose naughty behavior made him a pest around the barn. Carlos sold Thunder for $2,500 to Tim, an experienced racehorse trainer, who knew that Carlos was ignorant about horses. At the time of sale, Carlos said to Tim, “I hate to say it, but Thunder is bad-tempered and nothing special.” Soon after the sale, Thunder won three races and earned $500,000 for Tim.  Which of the following facts, if established by Carlos, would best support Carlos’s chance of obtaining a rescission of Thunder’s sale to Tim?