Professor Patterson

Law, Business & Society

Introduction to Contracts: Case Study Homework Questions
Read the Introduction to Contracts materials and cases. Briefly respond to the following case
study questions. Write on the back if you must, but use your own words.
Fletcher v. Peck, 10 U.S. 87 (Cranch) (1810)
What was the original contract at issue in the case? Who were the parties to it?
The original contract at issue was a deed made by John Peck, which gave Robert Fletcher certain
lands that were part of a large purchase made by James Gunn and others.
Do you think the decision improperly restricts a state legislature from overturning the
results of bad legislation and acting in the public welfare? Why/Why not? Why do you
think the U.S. Constitution gives such importance to contracts?
It ruled that the Georgia state law was unconstitutional, and hinted that Native Americans did not
hold title to their own lands. I think the decision did not improperly restrict a state legislature
from overturning the results of bad legislation because the government and laws are built on trust
people need to feel secure in the legal system. Overturning a valid contract, despite it coming
about from bad legislation, would cause citizens to lose faith.
Lucy v. Zehmer, 84 S.E.2d 516 (Va. 1954)
What was the contract at issue in the case? Who were the parties to it?
W.O. and J.C. Lucy brought up charges against A.H. and Idea Zehmer for refusing to follow up
to a contract that they had bought Zehmers land for $50,000. Zehmer argued that he thought the
offer was made in jest.
How did the court apply the objective theory of contracts in reaching its ruling?
The court held that Zehmer was warranted in believing that the contract represented a serious
business transaction and a good faith sale and purchase of the farm. An agreement or mutual
assent is essential to a valid contract. If his words and acts, judged by a reasonable standard,
manifest an intention to agree, it does not matter what state of mind he is in.
How did the court deal with Zehmers defense that he was high as a Georgia pine?
The court stated that it was contradicted by other evidence as to the condition of both parties, and
rendered of no weight by the testimony of his wife that she suggested that Zehmer drive him
home. So, he was not too drunk to make a valid contract.
Leonard v. Pepsico, 88 F. Supp.2d 116 (S.D.N.Y. 1999)
What did Leonard claim was Pepsis offer and how did it claim it was made?
John Leonard sued PepsiCo to enforce an offer to redeem 7,000,000 Pepsi Points for a Harrier
Jet that was advertised as a joke in a Pepsi commercial.

According to this case, under what circumstances can an advertisement be an offer?

An advertisement can be an offer if there is some language of commitment or some invitation to
take action without further communication. It is also where the advertisement is clear, definite,
and explicit, and leaves nothing open for negotiation.
Summarize the reasons why the court concluded that Pepsi had not made an offer.
The court stated that its generally not transformed into an enforceable offer merely by a potential
offerees expression of willingness to accept the offer. Additionally, the order form and the
acceptance of the order form by the company are considered an offer.
Hamer v. Sidway, 124 N.Y. 538 (1891)
What did Sidway, the executor of the uncles estate, argue in support of his position that
there was no consideration for the nephews promise?
Sidway argued that there was no binding contract due to a lack of consideration to support it.
How did the court deal with that argument?
The court reversed the ruling, and said that the consensual abstinence from drinking, smoking,
and swearing constituted consideration in exchange for the promise given by Story I.
What do you understand consideration to mean?
Consideration seems to mean evidence or intent to enter into the contract, given some incentive.