B-40
ALTERNATE CASE PROBLEM ANSWERS
CHAPTER 10
NATURE AND TERMINOLOGY
10-1A. Bilateral versus unilateral contracts
(Chapter 10—Pages 208–209)
The court held that the contract was bilateral in nature. Molway claimed otherwise because that would
10-2A. Quasi contracts
(Chapter 10—Pages 212–214)
The court imposed a quasi contract and remanded the case for a determination of the reasonable value
of Tackaberry’s services (which the court added could be the 10 percent that Tackaberry sought). The
B-42 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 10
10-3A. Recovery for services rendered
(Chapter 10—Pages 212–214)
The Superior Court of New Jersey held that to allow the widow to keep the funds, which were intended
to cover the husband’s medical expenses, would constitute unjust enrichment. The court first expressed
its view that the state legislature, when drafting the law exempting the first $5,000 of a decedent’s
estate from the satisfaction of the decedent’s debts, did not intend insurance proceeds paid with a
specific purpose in mind to be included as “assets of the estate.” Because the insurance proceeds were
10-4A. Bilateral versus unilateral contracts
(Chapter 10—Pages 208–209)
The court held that a unilateral contract existed. The court stated that a “bilateral contract is created
when one party promises to do or forbear from doing something in exchange for the other party’s
promise to do or forbear from doing something else. In a unilateral contract, there is only one promise.”
The court explained that the requirement of mutuality of obligation—that is, that both parties to a
10-5A. Bilateral versus unilateral contracts
(Chapter 10—Pages 208–209)
The court held that the employment agreement was a unilateral contract that could be formed only by
Hawley’s performance in Missouri, and thus that the accident causing Hawley’s death was not
compensable under Florida law. Arguing that its agreement with Hawley was a bilateral contract
executed in Florida, D.L. appealed to a state intermediate appellate court, which reversed the judgment
of the lower court and held that the agreement was a bilateral contract. The appellate court stated, “To
form a bilateral contract, there must be mutuality of obligation. Here, Hawley and Appellant clearly
10–6A. Quantum meruit
(Chapter 10—Pages 212–214)
As you learned from the text, the Latin phrase quantum meruit means “as much as he deserves” and is
tied to the doctrine of quasi contract. According to the chapter, a quasi contract is a fictional contract
created by a court and imposed on parties solely in the interest of fairness. A quasi contract is formed
10-7A. Recovery for services rendered
(Chapter 10—Pages 212–214)
The court granted a motion for summary judgment in favor of Washut’s estate (Adkins had filed her suit
B-44 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 10
10-8A. Interpretation of contracts
(Chapter 10—Pages 215–219)
The Utah Supreme Court held in part that the attorney’s oral statement capped the amount of the fees
10-9A. Implied contract
(Chapter 10—Pages 210–211)
The court held that Wrench submitted sufficient evidence of an implied contract to survive Taco Bell’s
motion for summary judgment on the issue (but ultimately ruled against Wrench on other grounds).
“Implied in fact contracts often arise where one accepts a benefit from another for which compensation
is customarily expected. Thus, where evidence shows that the parties understood that compensation
would be paid for services rendered, a promise to pay fair value may be implied, even if no agreement
10-10A. Types of contracts
(Chapter 10—Pages 210–211)
The trial court ruled in favor of TCC, and on Dixon’s appeal, a state intermediate appellate court upheld
the ruling. Dixon appealed to the Oklahoma Supreme Court, which affirmed the trial court’s decision.
