APPLIED SCIENCE 450 PROFESSIONAL ENGINEERING PRACTICE

Case 2 – Contracts

Required One or two sentence answers to each question. Let the space beneath each question

be your guide to the amount of answer required. 1) Distinguish a promise from an offer.

An offer is a tentative promise, dependent on an acceptance. A promise is not tentative.

2) Why is an agreement to agree not a binding contract?

Because the terms of the agreement are undefined 3) In what ways may an offer close?

By acceptance, lapse of time, or revocation

4) What is the legal effect of a counter-offer? A counter-offer voids or rejects the original offer.

5) What is required for an acceptance to be effective? The offeree must agree to the conditions set forth in the offer The acceptance must be in the same terms as the offer. The acceptance must be communicated to the offeror.

6) Is it possible for a contract to be formed without communication of an acceptance? Explain how. If a letter accepting an offer is sent via the mail, a contract is formed once the letter is in the postal system.

7) An engineering company has been doing design work for a charitable organization without charge. The design work is for construction of buildings and the installation of equipment used by the charity. The construction and installation is done by contractors who do charge for their work. A government inspector has found defects in the design and installation of several pieces of equipment in two buildings and insists that these be fixed immediately. The remedial work would likely cost several thousand dollars. Does the charity have any recourse against the engineering company in this situation? Why or why not? The charity does have recourse to both the engineering firm for any defects in their design because once a promisor begins to perform a service without consideration, the service must be carried out with reasonable and appropriate care.

APSC 450 Professional Engineering Practice 2 Case 2 - Contracts

8) Endorphintech employs Jane who sends an offer by e-mail on behalf of the company to BioMachines to purchase equipment. Sam, a BioMachines employee, receives the e-mail and replies three days later accepting the offer. In this interval, Jane leaves her job at Endorphintech and her e-mail account is closed. Sam’s reply bounces back as undeliverable. After a cumbersome effort of some days to find out who replaced Jane, Sam is informed that the offer has lapsed as Jane’s replacement found an alternate equipment supplier. a) Was there an enforceable contract between Biomachines and Endorphintech? Explain.

No because according to e-commerce law, the acceptance must be out of the control of the party accepting the offer (i.e., received at the recipient’s server)

b) Can Endorphintech be held vicariously liable for the offer Jane made? Explain. No, the offer was made and there is no liability attached to an offer.

c) Would it have made any difference if Sam had faxed his acceptance? Explain.

Yes, if the fax were successfully received, then the contract would be binding.