Case Study Of The Common Law: Applicable Law

1. Travelco’s defense

Applicable Law

The UCC applies to a contract for sale of goods. The common law applies to any other contract, such as services. Here, no sale of goods is involved in the agreement between Travelco and Polly, the common law governs. Valid Contract

A valid contract is created through valid mutual assent and consideration. Mutual Assent

A valid mutual assent requires valid offer and acceptance. Offer

An offer is an objective manifestation of a willingness by offeror to enter into an agreement. It must be communicated to the offeree. Here, Travelco ran an advertisement which promises a free trip to Scotland for a one-week vacation as promotional award. Polly read the advertisement, so the offer was communicated.

Both party must give consideration. In unilateral contract, the offeror’s promise must be exchanged with the offeree’s performance. To be a valid contract, Travelco’s promise and the Polly’s performance must be exchanged. Travelco will strongly argue that there was no consideration from Polly even though Travelco promised a free trip as legal detriment because listing on the telephone book is unlikely a legal detriment. Gift

Gift is a transfer of property with nothing given in return and no consideration. Gift is voidable. Travelco will strongly argues that Polly did not give any consideration, and it was a gift. Therefore, Travelco can void the promise. Conclusion

Travelco should assert i) no valid offer because it was an advertisement – Travelco is likely win, ii) if there was an offer, the offer was properly revoked – Travelco will not likely win, and iii) no valid consideration makes the gift promise that is voidable – Travelco will likely win. 2. Damages Likely to Recover Damages

To recover damages, they need to be foreseeable when Polly accepted the potential offer. (1) Cost of Listing Telephone Number

Polly will likely recover the damages because the cost of listing her phone number was an additional cost and