Logan Donaldson
Business Law
Case Study 2
04/05/2020
The four required elements required to establish a valid contract, in this case between
Samand the Chain Store are, offer acceptance, the intention of legal consequences and
consideration. (Kubasek 2019). The first element is covered when sam offered to provide the
store manager with a product and a discussed amount, this being a gray area because his offer
lacked a deadline on delivery. The second aspect being acceptance was questionable as well
since the facts of the case only imply that the store manager agreed to the delivery. The next
aspect being the intention of legal consequence is again, shaky because they were capable of
making a legal decision, but there is no indication that the parties actually intended to enter a
legally binding contract. The final element, consideration, requires that a promise must be
exchanged for adequate consideration. (Kubasek 2019). Sam offered consideration when he
promised to deliver the number of units, but the store manager did not offer a deposit or promise
to pay or any other considerations. With everything taken into consideration, there is no valid
contract between Sam and the Chain store.
Even if there is not a valid legal contract between Sam and the Chain Store, there may
still be a quasi-contract or elements of what is called promissory estoppel. A quasi-contract is a
legally binding substitute agreement created by the courts between two parties who do not
have an actual contract, but in the interest of equity and fairness imposes a contractual
obligation between them (Kubasek 2019). A major element of a quasi-contract is unjust
enrichment. Here, it doesn't look like Sam's failure to deliver immediately provided him with an
unfair advantage. At the same time, it is apparent that the Chain Store was not unjustly damaged
by Sam's failure to deliver immediately. Accordingly, it is not likely that the Chain Store would
prevail on a claim of quasi-contract against Sam.
A promissory estoppel is a legal principle that a promise is enforceable by law when the
promisor (Sam) makes a promise to the promise (Chain Store) who relies on it to their detriment.
Based on the same assumption that the Chain Store was not apparently unjustly damaged, the
concept of promissory estoppel would also not likely apply.
Covenant of Quiet Enjoyment - The rights and obligations of both the tenant and
landlord depend upon their contract. Standard residential lease agreements usually include a
covenant of quiet enjoyment which ensures a landlord or tenant against a
disturbance of their right to possess or use property (Kubasek 2019). Some of the facts
may support that Sam is in breach of the rental contract since it is apparent that the noise from
his barking Machine was disturbing the neighbors, which could be a breach of the landlord's
covenant of quiet enjoyment as it relates to the other apartment tenant's rights. In that case, Sam
could be evicted.
Conducting a Business -- Unless otherwise specified, most standard residential lease