What else do you need? Let me see what I can do to get it to you.
This is the Bibe Memo. Please expedite this for me, I am well behind.
FROM: Senior Partner
RE: New Client
DATE: April 24, 2007
Yesterday I met with a new client, Mr. I.M. Bibe, who seeks my advice regarding a
contract he entered into last week. The facts are set forth below. One of our associates
has completed the research. All applicable materials are attached. Please read the facts
and the research and write an analysis for me so that I can discuss Mr. Bibe’s rights and
responsibilities with him.
Mr. Bibe is a thirty-two year old marketing executive who works for a computer chip
company. Mr. Bibe has a bachelor’s degree in business administration, with an emphasis
in accounting and a master’s degree in marketing. He began employment with his
current firm shortly after obtaining his master’s degree, starting out as a marketing
assistant and moving up over the last several years to various marketing positions.
Last Friday, Mr. Bibe and three co-workers left the office at lunch time, about 12:30
p.m., to celebrate the fact that they had reached their sales and marketing goals for last
year, which entitled each of them to a $150,000 bonus. This is the third year in a row that
Mr. Bibe and his group have reached their goals. Mr. Bibe and two of the co-workers
were drinking wine during lunch. A third co-worker, Owen Lotts, drank only water.
Each of them ordered a large salad to eat. While Mr. Bibe and the two co-workers
enjoyed their second bottle of expensive wine, Lotts began telling Mr. Bibe about a small
coffee shop that he wanted to sell. Lotts was aware that Mr. Bibe had been looking for a
small business to purchase. Lotts told Mr. Bibe that with the bonus money from the past
two years, Mr. Bibe could purchase Lotts’ coffee shop, that the coffee shop was a
profitable business, and it was worth well over the $300,000 asking price. Mr. Bibe
laughed and said, “It’s tempting, but I’m not interested right now.”
Lotts ordered a third bottle of wine for the group, and while they were drinking it, he
went to his car. He returned with some books that he said contained his business records.
Lotts again told Mr. Bibe what a great deal the coffee shop was, that Lotts had
consistently made over $30,000 per year profit on the shop, and that Mr. Bibe should buy
it. Mr. Bibe finally told Lotts to put the offer in writing. Lotts walked up to the bar and
returned with another bottle of wine and a blank piece of paper. Lotts poured the wine
for the group and poured another drink of water for himself. He then wrote the following
offer on the paper. “I, Owen Lotts, agree to sell, and I.M. Bibe agrees to purchase “The
Coffee Shop” at 12 N. Main Street for the sum of $300,000.” Lotts signed the paper and
gave it to Mr. Bibe, who took the paper while drinking the wine and said, “Oh, why not?
I’ve always wanted a profitable little side business.” Mr. Bibe then signed the paper.
Lotts paid the lunch and wine bill and the group left. By then it was 3:00 p.m, so the
group decided not to go back to the office. Mr. Bibe drove to his home, about 20 miles
away, and took a nap. He awoke about 8:00 p.m. with a headache, but immediately
remembered the events of the afternoon. He does not think he wants to purchase the
coffee shop and seeks our advice regarding whether or not he is bound by the contract he
Research has revealed that the relevant statute states: