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Question 1
David has been playing the harp for the Boston symphony orchestra for twenty years. David is coming to the end of a two year contract he has with the orchestra and is preparing to begin negotiations on another contract. His current contract pays him $30,000 per year and he is hoping for a $50,000 per year raise. The day before he is supposed to meet with the director of the symphony, David receives an offer to play with the New York Philharmonic for $500,000 per year. During his talks with the symphony director, David says "I have been offered a $500,000 per year job with the philharmonic. I have to take it unless you can match the offer. Is there any way you can match it because I'd really like to stay in Boston." The director responds by saying, "Don't worry, David. We'll do what we need to do to keep you happy." David tells the Philharmonic that he will not be accepting their offer. Two weeks later, the symphony offers David a $310,000 contract and tells him that if he does not accept immediately, they will not allow him to continue playing for the symphony. David sues the symphony for breach of contract. David will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct The general rule concerning interpretation is that, where the interpretation of an expression is in question, the expression should be given an objective interpretation. That is to say, the expression should be given the interpretation that a reasonable person standing in the addressee's shoes would give it. Here, a reasonable person would think that the symphony has agreed in principal to match the Philharmonic's offer to David. Therefore, David and the symphony have a binding agreement and D is the correct answer.
Incorrect! The general rule concerning interpretation is that, where the interpretation of an expression is in question, the expression should be given an objective interpretation. That is to say, the expression should be given the interpretation that a reasonable person standing in the addressee's shoes would give it. Here, a reasonable person would think that the symphony has agreed in principal to match the Philharmonic's offer to David. Therefore, David and the symphony have a binding agreement and D is the correct answer.
Question 2
David is a world renowned harpist who performs all over the world. David is hired by the Tri-State Classical Music organization to give a New Years Eve performance at the Metro Theater. On New Years Eve, David arrives at the Metro Theater in midtown Manhattan and begins to prepare for the show. Meanwhile, the concert organizers and fifteen hundred classical music lovers are waiting for David at the Metro Theater across the river in East Rutherford, New Jersey. Because of the confusion, the performance has to be canceled and Tri-State files suit against David the next day. Tri-State argues that when they made the arrangements with David, they assumed he understood that the show was to take place in the Metro Theater in New Jersey. David claimed that he thought the show was to take place in the Metro Theater in New York. Tri-State will win this case:
Correct
Incorrect!
Correct In situations where the parties to the contract have different interpretations of the expression but each interpretation is equally reasonable, no contract is formed. That being the case, there was no contract between David and Tri-State because each of them had a reasonable interpretation of the expression at issue. Therefore, David was not in breach of any contract and FALSE is the correct answer.
Incorrect! In situations where the parties to the contract have different interpretations of the expression but each interpretation is equally reasonable, no contract is formed. That being the case, there was no contract between David and Tri-State because each of them had a reasonable interpretation of the expression at issue. Therefore, David was not in breach of any contract and FALSE is the correct answer.