HYPOTHETHICAL FACTS FOR THIS DISCUSSION – DO NOT ADD OR ASSUME UNSTATED FACTS. COMMON LAW APPLIES.

NOTE: THE NEXT DOOR NEIGHBOR WAS SITTING IN HIS YARD THE WHOLE TIME AND TOOK A VIDEO OF THE WHOLE THING, SO THE FACTS OF THIS HYPOTHETICAL CAN BE PROVED IN COURT BY AN IMPARTIAL WITNESS. DO NOT BE SIDETRACKED BY “EVIDENCE” WONDERMENTS.

Emerson Smith has a classic muscle car that he fixed up and has enjoyed drag racing. He has kept it well maintained. Much as he loves the car, Emerson needs quick cash. He parks the car on his front yard, with a large sign on the windshield that says, “Cherry of a classic car, For Sale – asking $4,900. AS-IS.” He leaves to run some errands.

While Emerson is out, Val Bailey drives by and sees the car. She is immediately enamored and stops to look at it. She is sure the car is worth more than the suggested asking price. When she knocks on the front door, there is no response; she looks around, and decides nobody is home, so she takes her business card and on the back writes, ” I will pay you $5,500 cash for your classic car.” She signs her name, and dates it, including the time, and slips the card onto the windshield of the car secured under the wiper blade.

About a half hour later, Emerson returns, waves to his neighbor; heads into his house. He does not see Val’s card because he does not walk around and look at the car. A few minutes later Emerson’sbuddy, Roger Dix, pulls in to look at the car. Emerson sees him and comes out.

Roger has always liked the car and has gone racing with Emerson. Roger offers Emerson $5,000 even for the car, and Emerson accepts. The two men shake hands on the deal. Emerson tells Roger, “Hey, it’ll be like keeping her in the family.” Emerson goes into the house to get the car title while Roger writes out a check to Emerson for $5,000.

Emerson comes out with the title in his hand. As Roger starts to hand him the check, Val pulls in the yard. She has an envelope of $5,500 cash for the car. Emerson says to Val, “sorry, but I have just sold the car to Roger. here.”

Val objects and says she had already offered $5,500.

When Emerson says, “No, you didn’t,” she marches him to the car and shows him her card.

“There is my offer, I already left you before — see the time on it? You weren’t home and now I have the money right here,” she said.

Emerson turns to Roger, “Sorry, she did leave this offer, so I’m going to sell it to her for more money.”

Roger objects, stating, “You just told her you already sold it to ME. And you did! We shook hands on it. You cannot back out now just because some card was floating around nobody knew about. She wasn’t even here! She’s a loser, too late!”

While the three of them stand in the yard arguing, Joe Don Tootsworthy drives in. He climbs out of his Porsche, looks at the muscle car, and moseys over to the three arguing people. He asks, “Hey there, who owns that hot rod for sale?”

“I do,” says Emerson.

“No, I do,” says Roger.

“It’s MY Car,” snaps Val.

“I’ll pay whichever of you, $8,000 for that car,” says Joe, “but only if the engine starts.”

Emerson answers, “Of course it starts. I accept your offer.”

Roger hollers, “NO! That car is no longer for sale! I bought it! It’s mine! I’m not selling it!” (Waving the check in Emerson’s face.)

Val stomps over to the muscle car, grabs the sign off it, and sits on the hood. “It’s my car. I was here before all of you and I have real money in hand.” she yells, waving her envelope of cash over her head.

Emerson says to Joe Don, “Pay no attention to them. I have the title — right here. My car. Let’s start the car.”

Questions for Discussion

YOU BE THE JUDGE. DECIDE WHO GETS THE CAR.

Consider the above facts; answer and discuss the following

In your Initial Post (due Wed. 11:59 pm):

• Identify the contract issues you see here.
• Applying the common law elements of contract (see Week 6 Lesson), who gets the car, if anyone, and for how much? Explain your reasoning using the definitions and principles of contract provided in your Learning Materials and any other research you do. Apply the six (6) elements of common law contract in your response, as applied to the facts.
• In terms of making an offer, what is the legal significance of Joe Don Tootsworthy’s statement, “only if the engine starts?”

Elements of Contract

A binding and enforceable contract requires all of the following elements (Cornell Law School, 2022):

Open All PanelsOffer

An offer must be definite and must be communicated. Its intent must also be objective, which means that a reasonable person could determine the person making the offer intended the offer he or she made. Not all offers result in a binding contract. For example, a company owner wants the companys office building renovated and contacts a construction company to make the needed changes. The construction company writes a contract for the work and submits it to the company owner. If any of the following happen, there will not be a binding contract:

• Too much time passes before it is signed (lapse of time).
• One of the parties dies.
• The building is destroyed by fire or a storm (destruction of subject matter).
• The company owner rejects the pricing (rejection by offeree).
• The construction company withdraws (revokes) the offer.

Acceptance

The principles of traditional contract law (case law) require that the acceptance be the mirror image of the offer, which means the acceptance must be in the exactly the offer presented. If the acceptance changes anything about the offer, then it does not mirror the offer and is considered either a rejection of the offer or a counteroffer.

Mutuality

Also referred to as a “meeting of the minds,” or “mutual assent,” mutuality means the parties agree to the specifics outlined in its terms at the time they enter the contract. Demonstration of mutuality of obligation to the terms of the contract happens when one party makes an offer and the other party clearly accepts that offer and they agree to the terms.

Consideration

Consideration is value promised in the exchange, i.e., payment of some sort or services. Each party will gain something. Consideration is not concerned with the actual benefit that results, only that there is a benefit conveyed and that the parties consider it adequate.

Legal Competency (Capacity)

Legal competency means that the parties are competent to enter into a contract. If a party has been found by a court to need a guardian, that party (the ward) is not legally competent to enter into a contract. If a party is not of legal agea minorthe party is not competent to enter into a contract. A person who is under the influence of a drug or otherwise incapacitated so as not to understand what is happening is not competent to enter into a contract at that time.

Legal Object (Legality)

An enforceable contract must involve a legal object or purpose according to either state or federal law. For example, bribery and blackmail are not legal transactions. Prohibited drug sales are invalid contracts.