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ALTERNATE CASE PROBLEM ANSWERS
CHAPTER 11
NATURE AND TERMINOLOGY
11-1A. Quasi contracts
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 court found that there was no contract—express or implied in fact—
because Ryan never assented to the terms of Tackaberry’s offer. Because of the parties’ failure
to agree on the amount of the commission, any implied promise to pay a commission would be
unenforceable. Ryan’s “silence combined with his acceptance of Tackaberry’s services might
11-2A. Recovery for services rendered
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.”
B-2 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 11
for defendant to have claimed that she is not liable because the marriage was not viable, and at
11-3A. Bilateral versus unilateral contracts
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
11-4A. Bilateral versus unilateral contracts
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.
11–5A. Quantum meruit
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 when a court seeks to avoid the unjust enrichment of one party at the
APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 11 B-3
expense of another. Quantum meruit prescribes the amount of compensation that will be owed
under the implied contract. To decide in this case whether a claim for quantum meruit will be
successful, first it must be shown that there was no actual contract and then that there is a basis
for the court to impose a quasi contract. Here, the facts specify that the parties had not signed
a contract. (Note that there is an argument that the parties’ conduct had resulted in an implied-in
11-6A. Recovery for services rendered
The court granted a motion for summary judgment in favor of Washut’s estate (Adkins had filed
her suit against the estate’s executrix, Gayle Lawson). On Adkins’s appeal, the state supreme
court affirmed, holding that her claim was barred because, as she herself testified, she had not
expected to be paid. “A party who is seeking damages on the basis of unjust enrichment must
11-7A. Interpretation of contracts
The Utah Supreme Court held in part that the attorney’s oral statement capped the amount of
the fees to which the firm was entitled and reduced the award to $18,000. The court stated the
general rule that contracts between attorneys and clients are construed in favor of clients, when
11-8A. Implied contract
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
B-4 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 11
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
11-9A. Types of contracts
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. The state supreme court concluded that “the employment relationship between
Dixon and TCC for the fall . . . semester is impliedly contractual.” The court explained, “When
11–10A. Interpretation of contracts
A court is bound to give effect to a contract according to the intent of the parties at the time that
they entered into it. This intent is determined by the parties’ expressions—the words of the
contract—and their plain, ordinary meaning. A contract is ambiguous if the intent of the parties
cannot be determined from its language, if it lacks a provision on a disputed issue, if a term is
susceptible to more than one interpretation, or if there is uncertainty about a provision. If a
APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 11 B-5
