Reference no: EM133113076

QUESTION 1.

Susan, a wealthy widow, invited an acquaintance, John, to her home for a steak dinner on a specific date and at a specific time. John told Susan that he would be delighted to come to dinner and, eager to impress Susan, spent lavishly in preparing for the evening. His purchases included a new blazer, new shoes, an expensive floral arrangement, and champagne for Susan.

At the agreed upon date and time, John arrived at Susan's house only to find that she had left for the evening. John went home and sent Susan an email saying that he came for dinner but she was not home. The next day, Susan sent John an email saying that she was sorry that she had forgotten the dinner and had gone to the theater with friends.

Assume that the facts given are admitted and not in dispute. Did Susan and John have a contract? Why, or why not?

QUESTION 2.

Rhodes, a wealthy businessman, and Axe, an artist, were involved in a business venture a few years ago, and Axe blamed Rhodes for the failure of that business venture. Despite the bad blood between the two, Rhodes, who was also an art collector, wanted one of Axe's paintings because Axe was becoming more popular, and the value of his paintings was increasing.

Rhodes sent Axe a letter stating that he would pay Axe $100,000 if Axe would agree to paint a painting specifically for Rhodes. When Axe received Rhodes's letter, he was angry and wrote a quick letter to Rhodes not only rejecting Rhodes's offer but saying that he thought Rhodes was a crook who should be in jail. As soon as Axe put the letter rejecting Rhodes's offer in the mail slot at the post office, Axe had second thoughts about rejecting the offer and decided that he would paint a quick painting and take Rhodes's $100,000. Axe immediately called Rhodes and said he accepted Rhodes offer and was ready to start on the painting immediately. The next day, Rhodes received the letter from Axe rejecting the offer. Now, Rhodes was angry because the letter said that Axe thought he was a crook and should be in jail, so Rhodes immediately called Axe and said the deal was cancelled.

Was a contract between Rhodes and Axe formed? Why, or why not? If a contract was formed, did Rhodes have a legal basis for cancelling the contract?