Bar Exam (US) Contracts: Question below is based on the following fact situation. Dexter Danfort...

Question

Question below is based on the following fact situation.

Dexter Danforth was a successful attorney who had a lucrative law practice in Century City, California. Dexter, who was an avid Los Angeles Avoiders fan, frequently wagered on baseball games with his bookie in Las Vegas. On October 4, 2008, before the start of the World Series between his beloved Avoiders and the New York Patriots, he wanted to place a "large" bet on the Avoiders. When Dexter was unable to contact his bookie, he called his law clerk, Duke Hodges, into his office. Dexter told Duke that he wanted to bet $10,000 on the Avoiders to win the World Series. Since he couldn't place the bet with his bookie, Dexter wanted Duke to travel to Las Vegas to "lay" the bet for him.

As a consequence, Dexter and Duke entered into the following written agreement:

"I. Duke shall travel to Las Vegas on October 5, 2008, and wager $10,000 (which shall be given to him by Dexter) on the L.A. Avoiders to win the World Series. The bet shall be made at The Diamond Head casino.

II. Dexter shall pay Duke $500 for placing the wager on his behalf. Moreover, if the Avoiders in fact win the World Series, then Dexter shall pay Duke an additional $500 bonus.

III. Duke shall never tell anyone about The Diamond Head wager.

IV. Duke shall be made a junior partner in Dexter's law firm at a starting salary of $20,000 after he (Duke) passes his California bar examination."

After the agreement was signed and sealed, Dexter handed Duke $10,000 and a roundtrip airline ticket to Las Vegas. Dexter then told Duke that he would be paid $500 after he returned from Nevada. Duke arrived in Las Vegas the next day and immediately went to The Diamond Head casino. There, he noticed a sign in the front window that read, "Diamond Head Casino Temporarily Closed Due to Renovations." After he was unable to reach Dexter by telephone, Duke placed the bet at The Keno Palace, another gaming establishment located next door to The Diamond Head.

The following morning, Duke flew back to Century City and gave the betting receipt to Dexter. When Dexter saw that the bet had been made at The Keno Palace, rather than at The Diamond Head, he angrily told Duke, "You, dummy, I purposely directed you to wager that $10,000 at The Diamond Head. Since you failed to follow my instructions, the deal's off." As a result, Dexter refused to pay Duke the $500 and terminated his employment with the law firm.

If Duke initiates suit for breach of contract, the court will most likely determine that placing the $10,000 wager at The Keno Palace, rather than at The Diamond Head, constituted a

AnswerChoose the correct answer.Choose all that apply. Correct Partially correct Incorrect Don't Know

  1. A
    Correct Answer
    breach of contract.
  2. B
    Correct Answer
    modification.
  3. C
    Correct Answer
    constructive condition precedent.
  4. D
    Correct Answer
    discharge by impossibility.
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