1. What kind of contract did Lulene and Ellen have? What kinds of issues may arise with their contract? 2. Suppose the Mississippi legislature passes a law, one day after Lulene and Ellen make their contract, that the sale of lemon pies is prohibited in the state because lemons have been found to cause cancer. How would that affect the contract? 3. Assume that when Lulene and Ellen entered into the agreement Ellen was an enterprising 16-year-old. Would the contract be enforceable? Why or why not? 4. Instead of meeting to discuss the deal, Lulene had sent Ellen a letter offering to sell her lemon pies for $5.00 per pie for as long as Ellen likes. Lulene says she must receive Ellen Solution Instead of meeting to discuss the deal, Lulene had sent Ellen a letter offering to sell her lemon pies for $5.00 per pie for as long as Ellen likes. Lulene says she must receive Ellen\'s answer by May 10. On May 8 Ellen signs a letter accepting the offer and mails it. On May 9 Lulene calls to withdraw her offer. Ellen says it\'s too late, she has accepted. Who wins? Ellen wins, because it was effective when sent. Assume that Ellen doesn\'t call the deal off when she is told the price is now $7.00, but wants to hold Lulene to the deal to supply pies at $5.00. If Lulene fails to supply the pies, and if Ellen then sues her for a breach of contract, what is Lulene most likely to argue to avoid liability? Lulene is most likely to argue with impossibility. .

1. 1. What kind of contract did Lulene and Ellen have? What kinds of issues may arise with their
contract?
2. Suppose the Mississippi legislature passes a law, one day after Lulene and Ellen make their
contract, that the sale of lemon pies is prohibited in the state because lemons have been found to
cause cancer. How would that affect the contract?
3. Assume that when Lulene and Ellen entered into the agreement Ellen was an enterprising 16-
year-old. Would the contract be enforceable? Why or why not?
4. Instead of meeting to discuss the deal, Lulene had sent Ellen a letter offering to sell her lemon
pies for $5.00 per pie for as long as Ellen likes. Lulene says she must receive Ellen
Solution
Instead of meeting to discuss the deal, Lulene had sent Ellen a letter offering to sell her lemon
pies for $5.00 per pie for as long as Ellen likes. Lulene says she must receive Ellen's answer by
May 10. On May 8 Ellen signs a letter accepting the offer and mails it. On May 9 Lulene calls to
withdraw her offer. Ellen says it's too late, she has accepted. Who wins?
Ellen wins, because it was effective when sent.
Assume that Ellen doesn't call the deal off when she is told the price is now $7.00, but wants to
hold Lulene to the deal to supply pies at $5.00. If Lulene fails to supply the pies, and if Ellen
then sues her for a breach of contract, what is Lulene most likely to argue to avoid liability?
Lulene is most likely to argue with impossibility.