Reference no: EM131732069
The Super Glue Case
Seeking to capitalize on his newfound celebrity, Harv. S. Wheat decided to abandon the hard life of a wheat farmer and open a store in Chaff. Wheat had read in the local paper that, due to a large recent influx of underpriced range horses, the costs of making glue had shrunk markedly. Wheat jumped in, opening “Wheat’s Glue Factory and Store” in the heart of Chaff. Like many entrepreneurs, Wheat expected to make a lot of bread. His was the only glue store in town.
Much to his surprise, his first customer was none other than Chuck Roast. After paying his large criminal fine, Roast had found himself bankrupt, without hope, his meat business spoiled rotten. Yet Roast was tough. He decided to remain in Chaff and open a bridge construction company. Chaff had no bridge construction company, so Roast figured he’d corner the market, a market that was sure to grow if ever a river or canyon appeared in Chaff.
[Unknown to most non-professionals, glue has for generations been essential in holding bridges together. (Look closely at the Golden Gate Bridge, for instance.) If Roast’s brilliant idea to use inexpensive glue instead of costly welds and rivets worked, Roast’s current financial worries would have been merely an entree to an overflowing monetary repast. That’s why Roast sought to buy glue from Wheat.]
“I need a glue strong enough to bind steel girders on high suspension bridges,” Roast demanded immediately after he walked into Wheat’s new store.
“We have exactly what you need,” Wheat replied. “This glue here, my new Super Stick Glue, is strong enough to hold bridges together, no problem. It is as strong as the leading bridge glue, only cheaper. You have my solemn promise.” Wheat was quite the salesman.
“I’ll take one ten-gallon barrel and try it out,” Roast decided. Each barrel cost only $100. The leading bridge glue brand sells for nearly $1,000 per barrel.
With plenty of time on his hands as he awaited geological developments in the Chaff area, Roast tried out his new glue in his empty construction lot. He glued steel girders end-on-end, running them up toward the sky. After a few days, repeatedly each trial structure failed. Burned, Roast went back to Wheat’s store.
“You’re a bad seed, Wheat. This glue’s no good!” Roast was simmering hot, turning pink in the middle. But Wheat was good with Roast. “No problem, Chuck. We here at Wheat’s Glue Factory and Store take care of our customers. I’ll give you your full money back, no questions asked. Here’s your $100.”
“I don’t want my money back,” Roast answered. “I want glue to hold together suspension bridges, like you promised!”
Roast sued Wheat for money damages. The court awarded Roast $1,000.
(a) According to the story, who is the promisor and promisee? What is the promise and what is the consideration?
(b) Is the contract enforceable according to the bargaining theory of contracts? Explain whether the three requirements of offer, acceptance and consideration have occurred.
(c) Under perfect expected damages, what should be the remedy for the breach of contract? Explain. Did the court award the perfect expected damages?