Case Analysis

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Case Analysis Kaplan University June 12, 2012 Not all contracts require words or written agreements, in fact some simply require the nod of the head or the wink of an eye. This form of contract is known as an implied contract. An implied contract is a contract that is “formed in whole or in part from the conduct of the parties” (Miller & Jentz, 2010). The elements involved in an implied contract include “1.) that the plaintiff furnished some service or property, 2.) that the plaintiff expected to be paid for that service or property, and the defendant knew or should have known that payment was expected (by using the objective theory of contracts test), and 3.) The defendant had a chance to reject the services or property and he did not” (Miller & Jentz, 2010). In the case of McDougal and Krunch, whereas McDougal, a good friend of Krunch, the owner of a local candy store and every day on his lunch hour McDougal goes into Krunch’s candy store and spends about five minutes looking at the candy. After examining Krunch’s candy and talking with Krunch, McDougal usually buys one or two candy bars. One afternoon, McDougal goes into Krunch’s candy shop, looks at the candy, and picks up a $1 candy bar. Seeing that Krunch is very busy, he catches Krunch’s eye, waves the candy bar at Krunch without saying a word, and walks out. The circumstances surrounding this case analysis prove that an implied contract exists between McDougal and Krunch. The first element met of the implied contract is that of Krunch furnishing McDougal a candy bar in which he has done every day on his lunch break. The second element met in this case is the expectation that Krunch probably has that McDougal will pay for the candy bar at a later time and that McDougal fully knows that Krunch expects him to pay for the candy. Within the second element, the parties must be reasonable persons and

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