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Review Questions §5.16 Review 

Lesson 5: Tort & Contract Law

1. Joe Driver wants to buy Bill Accident’s car. Joe offers $2000, and Bill counteroffers with $3000. When Joe doesn’t jump at the offer, Bill says “Ok, I’ll accept your offer of $2000 for my car.” Has a contract been formed?



2. An injured party in a breach of contract action includes a claim for punitive damages for the malicious behavior of the other party. Can you award punitive damages in the contract action?



3. Plaintiff alleges that he loaned the defendant, his ex-girlfriend, $1000, that she promised to pay it back, and that she has not done so. There is nothing in writing. At the time the money changed hands, the two were in an active relationship as boyfriend and girlfriend. The money changed hands, the plaintiff alleges, in cash without a receipt. The plaintiff, however, is rather specific about the cash ($1000 in the form of ten $100 bills that the plaintiff withdrew from the bank on a certain day—he produces bank records to show the withdrawal). Plaintiff states that the loan was to be paid back in a month and has not been. Since then, the couple has broken up.

The defendant maintains that she doesn’t remember receiving the cash. If she did receive it, she states that it was a gift because at that time, the couple was in the habit of exchanging gifts regularly and of buying each other food and other household items, although they were not living together as putative spouses—each had his or her own place. How would you rule?

1. For plaintiff

2. For defendant

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