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Learning Activity 1 – Due Thursday, 11:59 pm EST

This week’s learning activities focus on contract law.

FACTS:  Reed is interested in starting a collection of valuable first-edition books.  Reed met with Martina, an expert in rare books and consultant to collectors of rare and first-edition books.   Martina told Reed that she had recently acquired a very rare, first-edition book worth $3500.  Martina stated she would sell the book to Reed for $3500 to start his collection.  Neither Martina nor Reed knew the book was a newly printed fake worth only $50.  Reed trusted Martina and bought the book from her for $3500. 

Within days after the purchase, Reed took the book to an antiques appraiser and learned the book was a fake.  He informed Martina who was shocked to learn the book was a fake.

A.  What options does Reed have, if any, regarding the contract with Martina for the purchase of the fake book?

B.  What options does Martina have, if any, regarding the contract with Reed for the purchase of the fake book?

Label answer parts.

Learning Activity 2 – Due Thursday, 11:59 pm EST

This week’s learning activities focus on contract law.

Scenario:  You own the building and land on which you have been operating a business.  You want to sell the building and land and expand your business in a new location.

You offered to sell the building and land to Fast Ship, a small shipping and handling business, for $650,000.  Fast Ship agreed. Fast Ship promised to pay $600,000 in cash in 3 weeks, and pay the remaining $50,000 1 month later.  You agreed and shook hands with the owner of Fast Ship to close the sale.  You did not commit the agreement to writing.   

In 3 weeks, as agreed, Fast Ship paid you $600,000 in cash, and you transferred the deed to the building and land to Fast Ship. 1 month later, Fast Ship brought the remaining $50,000 cash payment to you.  You refused to accept the $50,000.

You regretted selling the real estate and wanted to keep the building and land.  You told Fast Ship that you were cancelling the contract and returning the $600,000 cash to Fast Ship.  Fast Ship refused the money claiming you had a valid contract.

A.   Can you get out of the deal by refusing to accept the $25,000 and returning Fast Ship’s $600,000?   Why or why?

Label answer parts.

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