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MMLU / A third-year law student was the captain of the law school rugby club. One…

Problem

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question

A third-year law student was the captain of the law school rugby club. One evening, the student and a few of his rugby teammates were drinking beer at a local pub. They were worried that the rugby club would be forced to disband because the law school had withdrawn its sponsorship. While the student was discussing the problem with his teammates, the owner of the tavern approached the players. The owner indicated that he was interested in sponsoring the rugby club because he felt it would help business at the pub. During their ensuing discussion, the owner agreed to sponsor the rugby club. The parties then orally agreed that the owner "would pay for all the usual sponsoring fees" incurred by the club. The owner had understood the agreement to mean that he would pay for the rugby shirts and supply the keg of beer following each "home" game that the rugby club played. Conversely, the student thought that the owner would be reimbursing the team for (a) the shirts, (b) the keg of beer (following "home" games), as well as (c) transportation expenses for "away" games and (d) equipment expenses (balls, etc. ). Assume that it was the customary practice of the rugby teams in the community to have the sponsors pay for (a) the shirts and (b) beer only. Before the rugby club was to play its first game under the owner's sponsorship, which of the following is the most accurate statement regarding the legal relationship between the parties?

choices

  1. A contract exists on the terms understood by the owner.
  2. A contract exists on the terms understood by the student.
  3. A contract exists on the terms that are customary for the other teams in the community.
  4. No contract exists.

subject

professional_law

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