Contracts 613
MIDTERM EXAMINATION
Contracts 613

Issue: Valid Contract
Betty v. Art
Formation
For there to be a contract, there must be an offer, acceptance and consideration.
Offer
An offer the present outward manifestation of intent to be bound by contractual agreement requiring definite and certain terms and is communicated to the offeree. When Betty asked Art on what terms he would build a barn on her property was a present outward manifestation. Here Art responded that he had never built a barn for hire, he would charge $100 per square foot about $10 more than expected cost was intent to be bound by contractual agreement. When Art told
Betty that he could build a 50 x 50 barn Betty said, "OK, if you guarantee
January 1, 2005 completion” by her own words that she wanted to be bound by contractual agreement, Art agreed to the contract. Hence, it would be deemed that this present outward manifestation, because in the parties own words indicates their intent to be bound by contractual agreement for the build of
Betty barn.
Art will counter that their agreement was nothing more than a preliminary negotiations because the price increase there was a new agreement Betty’s initial inquiry was for $100 per square due to the increase in lumber he had to increase the price by $30 per square feet. Further, he had contracted to sale his farm and would not be able to build the barn.
However, since one barn would build (quantity), 50’ by 50’ (size), to be completed by January 1, 2005 (time), an advance payment was made of
$10,500 (price), and the barn (subject matter) were described with particularity, the terms were sufficiently definite and certain to be enforced by the court.
Betty agreed to the price increase prior to Art telling her that he had a contract on his farm and would be moving away, however, the offer had been effectively