5-2 MILESTONE TWO: CASE STUDY TWO
1
5-2 Milestone Two: Case Study Two
Southern New Hampshire University
, 5-2 MILESTONE TWO: CASE STUDY TWO
2
5-2 Milestone Two: Case Study Two
Sam Stevens lives in an apartment building where he has been working on his new
invention, a machine that plays the sound of a barking dog to scare off potential intruders. A
national chain store that sells safety products wants to sell Sam’s product exclusively. Although
Sam and the chain store never signed a contract, Sam verbally told a store manager several
months ago that he would ship 1,000 units.
Sam comes home from work one day and finds two letters in his mailbox. One is an
eviction notice from his landlord, Quinn, telling him he has to be out of the apartment in 30 days
because his barking device has been bothering the other tenants. It also states that Sam was not
allowed to conduct a business from his apartment. Sam is angry because he specifically told
Quinn that he was working on a new invention, and Quinn had wished him luck. The second
letter is from the chain store, demanding that Sam deliver the promised 1,000 units immediately.
A.
In order to prove that a valid contract exist between Sam and the chain store various
elements must be present. A contract is formally defined as a promise or set of promises for the
breach of which the law gives a remedy or the performance of which the law in some way
recognizes a duty. [Kub] The four elements of a contract are the agreement, the consideration,
contractual capacity, and a legal object.
The first element of agreement would be deemed to exist if an offer by one party, called
the offeror, to enter into a contract and an acceptance of the terms of the offer by the other part,
called the offeree. The second element of consideration would be deemed to exist if what the
bargained-for exchange or what each party gets in exchange for his or her promise under the
1
5-2 Milestone Two: Case Study Two
Southern New Hampshire University
, 5-2 MILESTONE TWO: CASE STUDY TWO
2
5-2 Milestone Two: Case Study Two
Sam Stevens lives in an apartment building where he has been working on his new
invention, a machine that plays the sound of a barking dog to scare off potential intruders. A
national chain store that sells safety products wants to sell Sam’s product exclusively. Although
Sam and the chain store never signed a contract, Sam verbally told a store manager several
months ago that he would ship 1,000 units.
Sam comes home from work one day and finds two letters in his mailbox. One is an
eviction notice from his landlord, Quinn, telling him he has to be out of the apartment in 30 days
because his barking device has been bothering the other tenants. It also states that Sam was not
allowed to conduct a business from his apartment. Sam is angry because he specifically told
Quinn that he was working on a new invention, and Quinn had wished him luck. The second
letter is from the chain store, demanding that Sam deliver the promised 1,000 units immediately.
A.
In order to prove that a valid contract exist between Sam and the chain store various
elements must be present. A contract is formally defined as a promise or set of promises for the
breach of which the law gives a remedy or the performance of which the law in some way
recognizes a duty. [Kub] The four elements of a contract are the agreement, the consideration,
contractual capacity, and a legal object.
The first element of agreement would be deemed to exist if an offer by one party, called
the offeror, to enter into a contract and an acceptance of the terms of the offer by the other part,
called the offeree. The second element of consideration would be deemed to exist if what the
bargained-for exchange or what each party gets in exchange for his or her promise under the
