CAPITAL UNIVERSITY LAW SCHOOL

CONTRACTS - PROF. JEFF FERRIELL

FALL 1999 FINAL EXAM

QUESTION II – 33 1/3 % - LIMIT YOUR ANSWER TO 5 PAGES IN A BLUEBOOK

Polly Pearson was a commercially licensed airplane pilot. She used her single engine Cessna for charter flights for local businesses to locations around the state. Most of her business was during the week.

In order to make more money Polly decided to try to use her plane to pull airplane "advertising banners" during football games, summer festivals, and other outdoor events for local merchants who wished to use this means of advertising their products to local residents.

After making several calls to prospective customers she entered into an oral agreement to tow an advertising banner behind her airplane for "Delicious Deli" sandwich shops, during Enormous State University’s home football games during the fall football season. Delicious Deli wasn’t sure how to go about getting the appropriate banner made, so Polly volunteered to purchase it. Delicious Deli agreed and Deli and Polly agreed that Deli would pay Polly $1000 for flying with the Delicious Deli banner behind her airplane during each of 6 home football games this year. Delicious Deli paid her a $2000 downpayment to help her get started.

After entering into the agreement with Deli, Polly contacted Airplane Banners Galore and ordered an appropriate banner to tow behind her airplane. She also agreed to purchase the rigging she needed to attach the banner to her plane. The banner cost $500 and the rigging another $1000.

When the rigging arrived, Polly purchased an outdated banner from another pilot who used to be in the same business, for $50. It took her 10 hours of flying time, at a cost of a total of $2000, becoming proficient in picking up the banner with her airplane and learning how to fly and land with it in tow. Picking up the banner was quite difficult; it required taking off without it and then flying low to catch the banner with the towline that was part of the rigging. She destroyed the old $50 banner and the rigging in a couple of mishaps while she learned. She ordered a new set of rigging from Airplane Banners Galore.

Unfortunately, the Banner did not arrive in time for the first home football game. When it had not arrived in time for the second game, Delicious Deli decided to ask for its money back. Polly didn’t have the $2000 and Delicious Deli sued, claiming that it would have earned an additional $3000 profit during the first two games if Polly had performed as promised and seeking specific performance or lost profits for any future games.

DRAFT AN ANALSYIS OF POLLY’S POTENTIAL RIGHTS AND LIABILITIES AS A RESULT OF AIRPLANE BANNER GALORE’S FAILURE TO DELIVER THE BANNER.

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