Petterson v. Pattberg Case Summary

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Questions and Answers

What was the original principal amount remaining unpaid on the mortgage on April 4, 1924?

  • $6,230
  • $250
  • $5,450 (correct)
  • $780

Petterson paid the quarterly installment due on April 25, 1924.

True (A)

Why did Pattberg refuse to accept payment from Petterson when he arrived to pay off the mortgage?

Pattberg stated that he had already sold the mortgage.

The property in question was located at 5301 ______ Avenue in Brooklyn.

<p>Sixth</p> Signup and view all the answers

Match the individuals with their roles in the case:

<p>Petterson = Owner of the property and mortgagor Pattberg = Owner of the mortgage and mortgagee Plaintiff (Executrix) = Representative of Petterson's estate Third Person = Purchaser of the mortgage from Pattberg</p> Signup and view all the answers

What did Petterson do to demonstrate his readiness to pay off the mortgage?

<p>Exhibited cash to Pattberg. (A)</p> Signup and view all the answers

Pattberg sold the bond and mortgage after Petterson attempted to pay it off.

<p>False (B)</p> Signup and view all the answers

What was the financial loss claimed by Petterson as a result of Pattberg's actions?

<p>$780</p> Signup and view all the answers

What type of contract did the defendant's letter propose to Petterson?

<p>Unilateral Contract (C)</p> Signup and view all the answers

An offer for a unilateral contract can be withdrawn only after the requested act has been fully performed.

<p>False (B)</p> Signup and view all the answers

According to Williston, what must be given in response to a requested act in an offer?

<p>that very act, and no other</p> Signup and view all the answers

In the context of contract law, the performance of the consideration is often considered a ______.

<p>condition</p> Signup and view all the answers

Match the legal scenarios with the principle of offer revocation they illustrate:

<p>Bidder at a sheriff's sale revoking a bid = Revocation before property is 'struck down' Offer of reward revoked = Revocation before the requested act is done Broker commission offer revoked = Revocation before the land sale is effectuated Mortgage debt reduction offer revoked = Revocation before tender of payment</p> Signup and view all the answers

What was Petterson intending to do when he approached the defendant?

<p>Proffer performance by paying off the mortgage (A)</p> Signup and view all the answers

A tender of payment was actually made by Petterson before the defendant withdrew the offer.

<p>False (B)</p> Signup and view all the answers

What action by the defendant served as 'definite notice' to Petterson that the offered promise could not be performed?

<p>selling the mortgage</p> Signup and view all the answers

The case Dickinson v. Dodds illustrates that an offer can be withdrawn without formal notice if the offeree has ______ knowledge of acts inconsistent with the offer's continuation.

<p>actual</p> Signup and view all the answers

What was the final judgment in this case regarding the defendant's offer and Petterson's claim?

<p>The court ruled against Petterson, finding no contract was ever made. (A)</p> Signup and view all the answers

Judge Lehman, in his dissenting opinion, agreed with the majority opinion that no binding obligation was ever assumed by the defendant.

<p>False (B)</p> Signup and view all the answers

According to Judge Lehman, what principle of 'fundamental justice' is relevant to this case?

<p>If a promisor is himself the cause of the failure of performance... he cannot take advantage of the failure.</p> Signup and view all the answers

Judge Lehman states that the defendant's promise, though lacking initial consideration, was made to obtain something the defendant ______.

<p>desired</p> Signup and view all the answers

What did Judge Lehman believe was the 'condition precedent' to the defendant's performance?

<p>Payment of the mortgage by Petterson before the stipulated time. (D)</p> Signup and view all the answers

Match the legal scholars with their concepts related to unilateral contracts and offers:

<p>Williston = Revocation of offer before acceptance, precise act requested Langdell = Performance as a condition in offers Dickinson v. Dodds (case) = Informal revocation via knowledge of inconsistent acts Lehman, J. (dissenting) = Promisor causing failure of condition cannot take advantage</p> Signup and view all the answers

The defendant's offer was made as an incentive for the plaintiff to pay the mortgage after the due date.

<p>False (B)</p> Signup and view all the answers

What was the primary point of contention regarding the defendant's agreement?

<p>The defendant's promise was conditional upon their own performance. (C)</p> Signup and view all the answers

What phrase used by the defendant is central to the court's interpretation of the agreement?

<p>&quot;I agree to accept&quot;</p> Signup and view all the answers

The plaintiff's offer to pay, combined with the intention and ability to do so, is considered sufficient. A formal ______ is rarely needed in business transactions.

<p>tender</p> Signup and view all the answers

The judges who concurred with Kellogg, J. are:

<p>Cardozo, C.J., Pound, Crane, and O’Brien, JJ (D)</p> Signup and view all the answers

The dissenting opinion argued that the plaintiff had not fulfilled the necessary conditions for the defendant’s promise to be binding.

<p>True (A)</p> Signup and view all the answers

What action by the plaintiff did the court consider as fulfilling the defendant's request in the agreement?

<p>The plaintiff's offer to pay</p> Signup and view all the answers

Match the following arguments with the corresponding parties:

<p>Defendant = The act of payment required the defendant's assent, which was not given. Plaintiff = The defendant's promise was to accept payment, indicating a binding agreement. Court (Majority) = The plaintiff's offer to pay was sufficient to activate the defendant's promise.</p> Signup and view all the answers

What legal principle did the court invoke when evaluating the defendant's phrase "I agree to accept"

<p>The concept of offer and acceptance (B)</p> Signup and view all the answers

The court referenced a case (Surace v. Danna) and the opinion of Judge ______ to support its reasoning.

<p>Cardozo</p> Signup and view all the answers

Flashcards

Petterson v. Pattberg

A legal case concerning the payment of a mortgage and real estate sale.

Defendant

The party in a legal case who is accused or sued.

Executrix

A female executor appointed to carry out a will.

Mortgage

A loan secured by the collateral of a property.

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Bond

A formal contract that creates a debt obligation.

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Payment Agreement

An agreement on the terms and conditions of payments.

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Principal

The original sum of money borrowed in a loan.

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Loss Claim

A request for compensation due to financial loss.

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Defendant's Offer

The proposal by the defendant to accept payment before it was due.

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Inducement

An action intended to persuade the plaintiff to pay off the mortgage early.

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Act of Payment

The act requested by the defendant for the plaintiff to perform, which is payment.

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Binding Promise

A promise that becomes enforceable when certain conditions are fulfilled.

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Consideration

The benefit or value exchanged between parties to form a contract.

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Formal Tender

A formal offer of payment that lays the groundwork for legal claims.

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Misinterpretation

Misreading a promise that leads to injustice or confusion.

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Good Faith

The honest intention to deal fairly with others in transactions.

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Withdrawal of Offer

The act of the defendant retracting his promise to accept payment.

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Legal Enforcement

The ability to impose legal actions based on promises or contracts.

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Unilateral Contract

A contract where one party makes a promise in exchange for an act by another party.

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Condition Precedent

An event or act that must occur before a contract becomes binding.

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Offer Revocation

The act of withdrawing an offer before it is accepted.

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Tender of Payment

An offer to pay an amount owed, which must be presented to the creditor.

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Defendant's Promise

The offer to accept a discounted payment on a mortgage if paid early.

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Act Requested

The specific action that must be performed to fulfill the terms of an offer.

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Knowledge of Revocation

An offer is terminated when the offeree knows the offeror has revoked it.

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Binding Obligation

A legal promise that is enforceable by law.

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Promise Lacking Consideration

A promise made without an exchange of value is not enforceable.

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Duty to Accept Payment

A creditor must accept a legitimate offer of payment unless it is revoked.

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Withdrawal Before Acceptance

An offer can be cancelled anytime before the offeree formally accepts it.

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Cause of Non-Performance

When a promisor prevents the occurrence of a contract or duty they owe.

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Actual Knowledge of Withdrawal

If the offeree knows about actions inconsistent with an offer, the offer is terminated.

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Expired Offer

An offer that can no longer be accepted due to revocation or time limits.

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Study Notes

Petterson v. Pattberg Case Summary

  • Facts: John Petterson owed a mortgage to Zechariah Pattberg. Pattberg wrote Petterson offering to accept cash payment for the mortgage at a discounted price if paid by May 31, 1924. Petterson attempted to pay Pattberg on May, but Pattberg refused as he had sold the mortgage to a third party. Petterson sued.

  • Majority Opinion (Kellogg, J.): A unilateral contract requires a complete act of performance to be binding. Pattberg's offer was revocable until Petterson tendered payment. The offer was withdrawn before acceptance.

  • Dissenting Opinion (Lehman, J.): Pattberg's offer implied a commitment to accept payment if the payment was offered before May 31. The act of offering payment was acceptance of the unilateral contract. Rejecting payment after the offer constitutes a breach. Pattberg's refusal made performance impossible.

  • Key Legal Concepts: Unilateral contract, revocation of offer, tender of payment, implied commitment, condition precedent.

Unilateral Contract

  • A unilateral contract is formed when one party makes a promise in exchange for the other party's performance of a specific act.
  • Unlike bilateral contracts (where mutual promises are exchanged), acceptance in a unilateral contract is not a promise but the completion of the requested act.
  • The offeror can revoke the offer at any time before the offeree completes the requested act.

Revocation of Offer

  • An offer can be revoked before it is accepted.
  • Revocation can be communicated expressly or by actions inconsistent with the offer's continued existence. (e.g., selling the mortgage to someone else).

Tender of Payment

  • Tender of payment is an unconditional offer of payment sufficient to satisfy a debt.
  • In this case, a formal tender wasn't necessary, but the offer to pay was enough for acceptance.

Majority vs. Dissenting Views

  • Majority: Focuses on the offeror's right to revoke before complete performance of the requested act.
  • Dissenting: Emphasizes the implied commitment in Pattberg's offer and the impossibility of performance created by his refusal to accept the offer to pay.

Significance of the Case

  • The case highlights the key distinctions between unilateral and bilateral contracts and the importance of explicit versus implied agreements in contract formation.
  • It illustrates how a party's behavior can impact contract formation and interpretation.

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