BUL 5662 Lecture Notes - Lecture 5: Gross Margin, Tracfone Wireless, Fax

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Published on 1 Apr 2017
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11-1. Agreement. Ball writes to Sullivan and inquires how much Sullivan is asking for a specific
forty-acre tract of land Sullivan owns. Ball then receives a letter from Sullivan stating, “I will not
take less than $60,000 for the forty-acre tract as specified.” Ball immediately send Sullivan a fax
stating, “I accept your offer for $60,000 for the forty-acre tract as specified”. Discuss whether
can hold Sullivan to a contract for sale of the land.
No, Ball cannot hold Sullivan to a contract for sale of the land. There was no intention of a
definite promise to sell at $60,000.
11-2. Shrink-Wrap Agreements. TracFone Wireless, Inc., sells phones and wireless service. The
phones are sold for less than their cost, and TracFone recoups this loss by selling prepaid
airtime for their use on its network. Software in the phones prohibit their use on other
networks. The phones are sold subject to the condition that the buyer agrees “not to tamper
with or alter the software.” This condition is printed on the packaging. Bequator Corp. bought
at least 18616 of the phones, disabled the software so that they could be used on other
networks, and resold them. Is Bequator liable for breach of contract. Explain.
There is a breach of contract in this case beause Bequator failed to compy with these conditions
and tried to sell the software separately so that it can be used on other devices and the phones
separately. By doing do, the company has breached the agreement it had entered into by
purchasing the phones.
11-5. Acceptance. Judy Olsen, Kristy Johnston, and their mother Joyce Johnston, owned
seventy-eight acres of real property on eagle creek in meagher county, Montana. When joyce
died, she left her interest in the property to Kristy. Kristy wrote to judy, offering to buy judy's
interest or tosell her own interest to judy. the ltter said to "please respond to bruce
townsend". in a ltter to kristy not to bruce- judy accepted kristy's offer to sell her interest. by
that time, however, krist had made the same offer to sell her interest to their brotherdave, and
he had accepted. did judy and kristy have an enforceable binding contracT? or did kristy's offer
specifying one exclusive mode of acceptance mean that judy's reply was not effective? Discuss.
Judy’s mode of acceptance was effective because the offer did not prescribe mode of
acceptance. It was considered as the mutual consent of acceptance.
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Document Summary

Ball writes to sullivan and inquires how much sullivan is asking for a specific forty-acre tract of land sullivan owns. Discuss whether can hold sullivan to a contract for sale of the land. No, ball cannot hold sullivan to a contract for sale of the land. There was no intention of a definite promise to sell at ,000. Tracfone wireless, inc. , sells phones and wireless service. The phones are sold for less than their cost, and tracfone recoups this loss by selling prepaid airtime for their use on its network. Software in the phones prohibit their use on other networks. The phones are sold subject to the condition that the buyer agrees not to tamper with or alter the software. this condition is printed on the packaging. Bequator corp. bought at least 18616 of the phones, disabled the software so that they could be used on other networks, and resold them.

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