Contract-Based Fact Pattern

Barry and Bernard are brothers with equal shares in a towing company B&B Towing. Barry and Bernard agreed when starting the business that Barry would handle the paperwork and finances of the business, whereas Bernard provided the physical labor. One day, Bernard and his wife, Wilma, went shopping at the local grocery store. While there, they ran into Tommy, an old friend. Tommy is a car salesman at Third-Party Trucks. After a brief exchange of pleasantries, Wilma went to pick up some apples, leaving the two men to catch up. Tommy asked Bernard how his business was doing. Bernard responded, “We’re doing okay. I really need a new tow truck.” Tommy said he had a great deal at Third-Party Trucks: a refurbished, but otherwise new, tow truck for only $30,000. Bernard responded, “Wow! That is quite a deal. I’d like that.” Their conversation was suddenly interrupted when Wilma called Bernard over to the apples. Bernard quickly said, “See you soon, Tommy,” and rushed away. The next day, Barry was at the office of B&B Towing when Tommy knocked on the door. Tommy, in his Third-Party Trucks uniform, said, “I’m delivering the truck Bernard ordered. That will be $30,000, please.” Barry said that he was the manager of the finances at B&B Towing and that Bernard didn’t mention anything to him about a truck. He refused to accept the truck and said he was not paying the $30,000. The following week, Third-Party Trucks sued B&B Towing.

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