Contract Formation In Ohio

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here is the hypothetical
The legal issue at hand is whether an advertisement can be considered a contract offer.
- In general, an advertisement is considered an invitation to offer, not an offer itself.
- In Ohio, a business may not be legally obligated to sell a product at a mistaken price.
- Therefore, Transistor Town could argue that the advertised price was a mistake and not a contract offer.
Outcome: Likely, Transistor Town would win as they are not legally bound to sell the TV at the mistaken price.
Tom Garrity, Bill Simmons, and Edward Yang were close friends. Their friendship had developed over their mutual love for vintage stereo equipment, and the three often spent hours with each other, admiring their electronic collections, monitoring online auctions for vintage receivers and speakers, and playing music. On several occasions, Edward expressed his interest in a particular stereo receiver Tom owned, the classic Marantz Model *. Edward often told Tom that if he ever wanted to sell the receiver, he would like to be first considered as the buyer. Last Saturday morning, Tom and Bill were at Tom’s house. During their conversation, Tom stated “Bill, I know how much Edward loves my Marantz * receiver, and I have too much stereo equipment in the house. In fact, Sarah (Tom’s wife) has given me an ultimatum: Either a good portion of the receivers and speakers go, or I go! I have decided that I will sell my Marantz * to Edward for $*. It’s worth at least $*, and it’s the only Marantz receiver that I own, but I’ve decided that I would like to continue to live in this house, and my wife hasn’t given me any other options except to sell some of this stuff!” Later that day, Edward appeared at Tom’s house. Edward enthusiastically proclaimed “Tom, Bill told me about your offer, and I will take the Marantz * for $*. This is the classic receiver as far as I am concerned, and I am forever grateful to you! I promise I will take care of it, and you can have lifetime visitation rights! Oh, and please tell Sarah I said ‘thanks’!” Tom was perplexed. After his conversation with Bill on Saturday morning, he had decided to keep the Marantz *, and sell all of his other receivers. He knew that his next statement would test Edward’s friendship: “Edward, I’m sorry, but I have decided not to sell the Marantz *. We can discuss selling any of my other receivers, but the Marantz is ‘off-limits’.” Edward’s reply? “We have an agreement, Tom. You made me an offer, and I accepted your offer. Here is the $*. Where is the receiver?” Is there a contract between Tom Garrity and Edward Yang?
The legal issue is whether a valid contract was formed between Tom and Edward.
- A contract requires offer, acceptance, and consideration.
- In Ohio, communicating an offer to a third party doesn't constitute a valid offer.
Outcome: Likely, no contract was formed as Tom's initial statement to Bill may not be considered a valid offer.
Carter Morley and Erena Erickson live side by side in town homes joined together by a shared wall. Both residences are in need of new exterior paint. On Monday, Morley calls a painter, Tom Sizemore, having selected his name from the classified section of the phone directory. Morley describes his address, the physical dimensions and structure of his home, and he agrees with Sizemore that the work will be performed that Friday. Sizemore estimates that with his crew of five, and given the relatively small size of the home, the work will only take one day to complete. Morley advises that although he will have to work a fourteen-hour day on Friday, he would like to have the work completed in his absence. In passing conversation with his neighbor Erickson, Morley advises her of his “home improvement” plans. Early Friday morning, Sizemore and his team arrive at the address, but by mistake, they begin work on Erickson’s side of building. Although Erena is home, she does not object to the work, nor does she inform Sizemore and his crew of the mistake. Midway through the day, she offers them fresh-squeezed lemonade and ham sandwiches, and they heartily accept. Upon completion of the work at *:* p.m. Friday evening, Sizemore knocks on Erena’s door and asks if “the man of the home” is present, that he would like Morley to review the work and pay the agreed-upon price for the work. Erena chuckles, and “breaks the news” that the painting crew has made a mistake, one to her benefit. Erickson proclaims “I do not owe you one dime, because you do not have a contract with me; I will give you ten minutes to remove yourself and your materials from my property, or I will call the police.” Do Erickson and Sizemore have a contract? If so, why? If not, are there any other theories of recovery available to Sizemore?
The legal issue is whether a contract existed between Erickson and Sizemore.
- A contract requires offer, acceptance, and consideration.
- In Ohio, silence or non-response can't constitute acceptance of an offer.
- However, Erickson's actions may be seen as implicit acceptance under the doctrine of quasi-contract.
Outcome: Sizemore may not have a contract, but could potentially argue for compensation under quasi-contract.
Zsa Zsa Hilton, a wealthy socialite living in Beverly Hills, was frantic. Her best friend in the world was her pet poodle Caboodles, and Caboodles had been missing for three (*) days. Having searched her estate exhaustively, Zsa Zsa decided that her next best option was to post a reward for her beloved Caboodles. Zsa Zsa carefully prepared a poster advertising a reward for the return of her pet. The heading of the poster exclaimed “Please find Caboodles—Reward--$*,*!!!” Below the heading was a color “glamour shot” of the animal and Zsa Zsa’s contact information, including her address and cell phone number. After soliciting the assistance of her butler, her maid, and her best friend Eva Ritchie, Zsa Zsa displayed and distributed one thousand of the posters throughout the greater Beverly Hills metropolitan area. Later in the week, Dane “Bulldog” Sheppard showed up at Zsa Zsa’s front door. When she answered the door chime, Dane said “I am pleased to meet you, Ms. Hilton. I saw your ad for the return of your lost poodle, and I am your man. I will find him, Ms. Hilton, and let me say in advance that I really appreciate the $*,* bounty, um, reward money!” Is there a contract between Dane “Bulldog” Sheppard and Zsa Zsa Hilton?
The legal issue is whether a contract was formed between Zsa Zsa and Dane.
- In Ohio, a reward offer can form a unilateral contract upon completion of the requested act.
- Dane's acceptance of the reward offer could be seen as entering into this contract.
Outcome: If Dane finds Caboodles, he may be entitled to the reward as per the unilateral contract.