A.Discusswhether there is a valid offer and acceptance and, further, discusswhether there is an enforceable contract. There are at least fourissues here!
Thereis a valid offer here. Nowhere does it say that a contract cannot beentered upon when a person is intoxicated. The offer is also acceptedsince they both shook hands. The contract was entered upon in apublic place, such as a bar. In case of disputes, it is possible tocall upon witnesses to enforce the contract.
Basedon the finalized contract Nucky has moved as well. Not only that, hehas quit his job as well. Two things have happened because of thecontract that Mickey closed. Both of these have caused personaldamage Nucky. Nucky can and will file for damages recovery fromMickey.
Thefact Mickey told Torrio has no bearing on the situation. A deal hasbeen made and it must be seen through the end. Further, there is alsothe fact that Nucky does not have an alternative home, since the onlyalternative was damaged in a hurricane. That sympathy also helpsNucky and definitely won’t help Mickey.
B. Discuss whether Atlantic Plumbing may revoke its offer. What arethe competing arguments? Are there any other important facts?
AtlanticPlumbing can revoke its offer. There are three parties here –Nucky, Boardwalk Construction and Atlantic Plumbing. As far as Nuckyis concerned, the only party he should care about is BoardwalkConstruction. It does not matter to him if Boardwalk Construction issub-contracting work within the main contract.
Thatmeans, right now the only bone of contention is between Boardwalk andAtlantic. It is to be noted here that Bids were made, but none havebeen awarded yet. No money has exchanged hands. Further, under mostcircumstances, the bidder can withdraw at any point he wants. Sincethe actual bid has not been completed yet, Atlantic can pull outwhenever he wants.
Thereare some facts missing here. It is not mentioned if there are anypenalties assigned if the bidding company decides to withdraw. Ifsuch a penalty was discussed as part of the sub contracted work,perhaps Boardwalk can claim damages. If not, Atlantic can leavewithout any penalties and look for work elsewhere. Boardwalk can donothing but simply look for another partner for the plumbing job.
C. Howmuch does Capone have to pay? What are the competing arguments?
Caponewill have to pay the entire bill of $80,000. There is no room forconfusion because, the Boardwalk has kept Capone informed at everystep of the construction. There were two discussions that happenedhere.
Thefirst one was when Capone invited Boardwalk to take care of theconstruction. At that time, an agreement was agreed upon for $75,000.Both parties had agreed and no opposing arguments were made. Then,some weeks later, the contract was discussed again with additionaltime and amount related discussions taking place. Here also, bothparties entered a contract.
Theonly difference is that, the first contract was oral, while thesecond contract was written. When it comes to contracts, it does notmatter if the contract was made orally or in written. They are bothequally valid methods of making contracts. That is why Capone willpay the full amount.
D. Isthere an agreement here? What are the competing arguments?
Thereis an agreement here between Boardwalk and Eli. Boardwalk has alreadysent a written contract to Eli. The written contract clearly mentionsthat Boardwalk may not revoke the offer under any circumstances.
Asfar as Eli is concerned, the arrival of the second fax has no bearingon the contract. Eli was given time to respond to the contract sentby Boardwalk. From the notes, it looks Eli sent his response withinthe agreed upon time. Even if Eli saw the fax, it does not concernhim.
Thereis only one option for Boardwalk here. Eli has mentioned that theoffer is good as long as Boardwalk is willing to obtain liabilityinsurance. That means, in the original contract, the liabilityinsurance was not part of the discussions. This is something Eliwants to be included in the original contract. Since Boardwalk is nolonger in a position to complete the obligations of the contract, itcan simply refuse to get a liability insurance.
IfBoardwalk refuses the liability insurance, Eli will not accept theoffer. That way Boardwalk will not be compelled to complete theoriginal offer.