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Introduction to Contracts

INTRODUCTION TO CONTRACTS

1. Rocky Mountain Races, Inc., sponsors the â€œPioneer Trail Ultramarathonâ€ with an advertised first prize of \$10,000. The rules require the competitors to run 100 miles from the floor of Blackwater Canyon to the top of Pinnacle Mountain. The rules also provide that Rocky reserves the right to change the terms of the race at any time. Monica enters the race and is declared the winner. Rocky offers her a prize of \$1,000 instead of \$10,000. Did Rocky and Monica have a contract? Explain.

1. Janine was hospitalized with severe abdominal pain and placed in an intensive care unit. Her doctor told the hospital personnel to order around-the-clock nursing care for Janine. At the hospitalâ€™s request, a nursing services firm, Nursing Services Unlimited, provided two weeks of in-hospital care and, after Janine was sent home, an additional two weeks of at-home care. During the at-home period of care, Janine was fully aware that she was receiving the benefit of the nursing services. Nursing Services later billed Janine \$4,000 for the nursing care, but Janine refused to pay on the ground that she had never contracted for the services, either orally or in writing. In view of the fact that no express contract was ever formed, can Nursing Services recover the \$4,000 from Janine? If so, under what legal theory? Discuss.

1. Kim Panenka asked to borrow \$4,750 from her sister, Kris, to make a mortgage payment. Kris deposited a check for that amount into Kimâ€™s bank account. Hours later, Kim asked to borrow another \$1,100. Kris took a cash advance on her credit card and deposited this amount into Kimâ€™s account. When Kim did not repay the amounts, Kris filed a suit, arguing that she had â€œloanedâ€ Kim the money. Can the court impose a contract between the sisters? Explain. [Panenka v. Panenka, 331 Wis.2d 731, 795 N.W.2d 493 (2011)]

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Category: Sample Questions