Question

1. Find and read the following cases City of Everett Washington v.Mitchell, 631 P.2d 366, Web...

1. Find and read the following cases

  • City of Everett Washington v.Mitchell, 631 P.2d 366, Web 1981 Wash. Lexis 1139 Supreme Court of Washington.
  • Welles v. Academy of Motion Pictures Arts and Sciences, Web 2004 U.S.Dist. Lexis (2004) United States District Court for the Central District of California.
  • Mesaros v.United States, 845 F.2d 1576, Web 1988 U.S.App Lexis 6055, United States Court of Appeals for the Federal
  • What theory does the court use to evaluate the contract?
  • What is the objective theory of contracts?
  • When will a court set aside a contract?
  • Should an advertisement be treated as an offer rather than an invitation to make an offer? Why or why not?

Homework Answers

Answer #1

What theory does the court use to evaluate the contract ?

Some scholars argue that common law has long used objective testing to recognize a contract. Other scholars and writers claim that the widespread use of objective contract theory in court was a much more recent phenomenon, perhaps developed in the late 19th century.


On June 16, 2003, Welles filed a complaint against the Academy seeking termination and a court statement regarding the parties' rights and obligations under the receipt. On July 7, 2003, the defendant filed its response and counterclaim against the plaintiff, alleging breach of contract, declaratory relief, and breach of equitable easement. ) On July 31, the plaintiff filed a motion for summary judgment, which the Court denied on September 24, 2003. The plaintiff filed the instant motion for summary judgment on his first amended complaint.

What is the objective theory of contracts?

Objective theory of the contract. A principle in US law that the existence of a contract is determined by the legal significance of the external acts of a party to an alleged agreement, rather than by the actual intention of the parties.

A contract will be executed in accordance with its terms. Here, the Court must consider the terms of the contract and the relevant evidence of probation. The mistake of one party regarding the subjective intention of the other party is not, in itself, a reason for rescission.

When will a court void a contract?

Under contract law, there are circumstances under which a settlement agreement may be ineffective and may be set aside. These include:
where one of the parties lacks capacity (for example, a child or a person with mental disorders)
where an error has been made on a fundamental matter or that makes it impossible to comply with the settlement agreement
where there has been a fraud or misrepresentation of a material fact in certain circumstances
where there has been "sharp practice"
where there have been certain forms of coercion and undue influence

Should an ad be treated as an offer rather than an invitation to bid? Why or why not?

Ads are often an invitation to deal because they lack the important information that would make it an offer. If descriptive words are used to link someone and there is confidence in all applicable terms, the ad is likely to be considered an offer rather than an invitation to deal.

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