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Contract Quiz
Ernst has a valid claim against James due to the following reasons. A contract
was made between the both of them meaning a legally enforceable agreement, express or
implied (pg 93). It does not have to be a written document stating that there was an actual
agreement. There was an offer, which is transmitted directly to the offeree by acts or by words,
whether spoken or written, through any medium whatsoever (pg 99). James had told Ernst that
he would hold the car until he gets there considering the fact Ernst would have given James
money for the car making this consideration. Consideration is any lawful alteration that is
given in exchange for the persons consideration ( pg105). Although advertisements are usually
not considered an offer but are usually considered to be invitations to deal; that it, invitations
Because it stated call 1-800-007 and Ernst called him directly and spoke to James about the car
that's where we could see where the offer was technically made. There was never where an
acceptance of the offer clinches the contract (pg 103). The acceptance must be clear and
unqualified(pg 103), where in this situation the acceptance was never said. Promissory
estoppel occurs when a promise is made without any consideration, but the promisee, relying
upon the gratuitous promise, takes certain action or fails to take action, to his detriment( pg
109). This is where James who promised to hold the car until Ernst got there fell back on his
word and sold the car to someone else. There was reliance because Ernst was relying on James to
keep his word and hold the car even if he took a long time getting there. It was not Ernsts fault
for being there late. There was a detriment in this case were the promisee being James causes
damages to Ernst because he refrained from doing what he originally promised to do. There was
no fair compensation related to this because Ernst never got to even see the car let alone be able
operation of law in order to avoid unjust enrichment of the minds, one party has rendered a
benefit to another under such circumstances that fairness and equity require compensation (pg
95). There was technically no agreement when it came to Ernst being the one to buy the car
James just promised him that he would hold the car until he got there. But, due to the fact that
because James promised to hold the car, ended up selling it to someone else thus causing Ernst to
not only to ruin his suit,but buying a more expensive car than he originally planned to. Damages
refers to the compensation due to the nonbreaching party to recover any financial loss or injury
caused by a breach of contract ( pg 165). The defendant is liable only for damages that were
reasonably foreseeable at the time the contract was made or at the time the breach occurred (pg
168) , where as soon as James breached the whole agreement that's when things started falling
apart. Ernst should be able to collect some type of money for first of all , everything he went
through with buying a whole new car because he originally thought James was going to sell him
the car. If James did not breach his contract he would not have to give Ernst anything. Also, The
dealership was clearly not keeping track of who was entering it so when Ronald stole the keys
Ernst was not going to not do anything about it so therefore because he helped the dealership out
saving them money he should be compensated to reimburse him. If James would have told Ernst
that he sold the car to someone else he could have avoided all of these problems. Compensatory
damages is the correct word for the way Ernst should be reimbursed by both the dealership and
James. Meaning that in this situation if there has been a material breach of contract and this
breach has caused measurable damages to the plaintiff, the court will try to compensate the