In this assignment you will be provided a hypothetical fact pattern relating to contract formation. You will apply the “IRAC” method of legal reasoning to 4 different issues.
Fact Pattern:
Harry is a renowned horologist (watch maker). Crown Jewelry, a sole proprietorship, is a well-known, luxury jewelry store in need of hiring a horologist to custom-design and make watches and to inspect and authenticate luxury watches. Harry and Crown Jewelry had extensive conversations regarding Harry coming to work at Crown Jewelry.
On May 1, a week after those conversations occurred, Crown Jewelry sent Harry a signed, regular-mail letter dated May 1 stating, “Crown Jewelry will make Harry the head horologist of Crown Jewelry on a full-time basis for two years and pay Harry an annual salary of $75,000.”
Issue 1: Is Crown Jewelry’s offer binding? Please IRAC your answer.
Fact Pattern:
On the morning of May 7, Harry sent Crown Jewelry a registered, overnight-mail letter, signed and dated May 7, stating, “I am a renowned horologist. The $75,000 is not what I am worth. I will work full-time as the head horologist for Crown Jewelry for two years at an annual salary of $125,000. I am in negotiations with other jewelry companies seeking a head horologist. You may contact me by phone at 717-xxx-xxxx.”
Issue 2: What is Harry’s response to Crown Jewelry? Please IRAC your answer.
Fact Pattern: On the morning of May 9, Crown Jewelry called Harry at the number provided in Harry’s letter, but it went straight to Harry’s voicemail. Crown Jewelry left Harry a voicemail message stating it will agree to the annual salary of $125,000 and that it was sending a letter stating the same. In addition, Crown Jewelry sent a registered, overnight-mail letter, signed and dated May 9, stating “Crown Jewelry will make Harry its head horologist for two years and pay Harry an annual salary of $125,000.”
On May 10, Harry received the letter from Crown Jewelry and placed it on his desk without reading it.
On May 11, before reading the registered, overnight-mail letter on his desk, he accepted an offer over the phone to work for Royals, a competitor of Crown Jewelry. As a courtesy, Harry called Crown Jewelry and said, “Sorry, I just took a job at Royals. Too bad you couldn’t afford me.” Crown Jewelry responded, “You cannot work for Royals, Crown Jewelry already accepted your offer to work exclusively for Crown Jewelry for $125,000 a year.”
Issue 3: Was a contract formed between Crown Jewelry and Harry? Please IRAC your answer.
Issue 4: Does the Statute of Frauds apply to this agreement? Please IRAC your answer.