Simmons v. U.S. Facts:
American brewer placed tag on a fish that was worth 25000 to the finder. (P) caught the fish he cashed the fish in and was awarded the money. The IRS required him to pay taxes on the fish money
Issue: Can a person make a unilateral contract involuntarily? Rule: the offer for a prize or reward in s unilateral contract. Was the money awarded to the (P) a gift? Reasoning: the court ruled that because the offer was known to him, even if he did not intend to catch the fish, a person may accept an offer for a unilateral contract by rendering performance. Since the company was obligated to give the money it was not a gift. Carlill v. Carbolic Smoke Ball Co. Facts: (D) put advertisement in the paper that said anyone who go sick after using product would be given money o advertisement said money was supplied in bank already (P) got sick after using product as directed and wanted to collect (D) refused Issue: Can an advertisement make a unilateral contract? Rule:
Empire Machinery co. v. Litton Business Telephone systems Facts:
April 2 1973, Murphy wrote Empire a letter Empire returned card April 17 Murphy contacted empire Negotiations between Litton and Empire continued. July 30 Murphy sent a letter to Empire to install system o Empire wrote a check to Litton o Murphy on eth sales agreement acknowledged this account. Murphey did not sign portion of contract. Empire sent letter to Beel stating they had contract with Litton. o Empire purchased 12,000 in equipment at Litton request.
Issue: If a contract states how the offer is to be accepted, is there any other means of acceptance? If the offeror relinquishes his right to acceptance is the contract limited to what is specified in writing? Rule: UCC 2-206 – Unless otherwise unambiguously stated by the language or circumstances: (1) AN offer to make a contract shall be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances.
Reasoning: Liton argues – that because of clause 6 there was never a signing so there was never a contract o Litton says that the conduct that could have made a contract was by people who did not have authority to do so. Empire – this clause 6 can be waived by the conduct and the assent by Litton.
Basically because Litton took the check and kept the money they showed conduct that they had accepted a contract.