Chain Store Case

For a valid contract to exist between Sam and the chain store four elements must be present; these elements are the agreement, the consideration, contractual capacity and a legal object. The first element of agreement consists of an offer, by offeror to enter into a contract and an acceptance of the term by the offeree. The second element of consideration is what each party gets in exchange for the promise under the contract. The third element is contractual capacity, the legal ability to enter into a binding agreement. Under the third element of the contract, each party must have the mental ability to understand the rights and obligations under a contract and therefore comply with the terms. The fourth element of a contract is a legal

In this case, Sam made a promise to ship 1,000 units of his new invention. However due to the eviction from his apartment and place of business, he was unable to keep the promise. He had knowledge that the chain store would sell his product exclusively and thereby the chain store relied on Sam’s promise. The chain store could argue that it reserved shelf space for Sam’s new invention and therefore it forgo contracts with other potential vendors. The chain store had a detrimental reliance on Sam’s offer; therefore the court may disallow the revocation of Sam’s offer.

Rights and obligations of landlord and tenant under a standard residential lease

The duties and rights are classified under four areas: possession, use, maintenance and rent. (Kubasek, p.1107) Under the area of possession the landlord has the obligation to give possession of the premises to the tenant. The tenant has the right to retain possession. The tenant’s right to use the premises is governed by the agreement between the landlord and tenant. In the absence of a use agreement the tenant may use the premises in any manner as long as the use is legal and does not impose substantial injury to the landlord’s property; permanent and substantial injury to the property is considered waste. (Kubasek, p.1110) The tenant has an obligation not to commit waste and the landlord has a right to reimbursement for tenant’s waste. Regarding maintenance, landlord’s responsibility is to comply with safety, health codes and certain statutory requirements. (Kubasek, p.1112) Many states have imposed the implied warranty of habitability, where the landlord is responsible for making sure that the dwelling is habitable. Rent is defined as the payment to the landlord for the tenant’s right to possession and exclusive use of the property. The tenant obligation is to pay rent and the landlord right is to collect payment, if tenant fails to pay landlord has the right to sue or impose a landlord’s lien. (Kubasek,