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    SmartBrief enables case brief popups that define Key Terms, Doctrines, Acts, Statutes, Amendments and Treatises used in this case.

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    Contracts Keyed to Fuller

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    Contracts Keyed to CalamariContracts Keyed to KnappContracts Keyed to MurphyContracts Keyed to KuneyContracts Keyed to EpsteinContracts Keyed to TemplinContracts Keyed to Marshall

    Lonergan v. Scolnick

    Citation:

    California Court of Appeal, Fourth District, 1954. 129 Cal.App.2d 179, 276 P.2d 8.
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    Facts

    Lonergan (Plaintiff) saw an ad in the Los Angeles paper for 40 acres of land in Joshua Tree. He responded to the inquiry asking Scolnick (Defendant) if he could learn more about the property. Defendant responded to the plaintiff with a letter which described the property and asked what price he would be willing to pay. Plaintiff responded that he was unsure if he had found the property based on the defendant’s description, and suggested he contact an escrow agent at a bank in case he wanted to purchase the property. Defendant responded to the letter approving the escrow agent and confirming that plaintiff had correctly identified the property, however he informed plaintiff that he should decide quickly if he wanted to purchase the land because defendant had another interested buyer for the property. Defendant sold the property to the third party. Afterwards, plaintiff responded to defendant that he wanted to purchase the property. Plaintiff learned that the property had been sold, and filed suit against defendant for specific performance or damages, in the event specific performance was impossible.

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    Case Quiz

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    Q.1 - In Lonergan v. Scolnick, the court denied contract formation based on which core deficiency under classical offer-and-acceptance doctrine?
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    Correct! The court ruled that a reasonable person would not interpret Scolnick’s communications as expressing a present intent to be legally bound—an essential element of a valid offer.
    Incorrect. consideration was not at issue because no contract was formed.
    Incorrect. timing was a factor, but the absence of an offer was dispositive.
    Incorrect. misapplies estoppel—Lonergan’s reliance was not induced by a definite promise.
    Q.2 - If Scolnick’s letter had been phrased with explicit terms—such as price, escrow, and timeline—but concluded with “subject to seller’s final approval,” which of the following doctrines would most directly control enforceability?
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    Incorrect. promissory estoppel requires a clear promise, not conditional language.
    Correct! A clause conditioning agreement on the offeror’s “final approval” gives unlimited discretion and renders the promise illusory and unenforceable.
    Incorrect. open terms may be valid, but not when one party retains absolute discretion.
    Incorrect. D is irrelevant—the mailbox rule presumes a valid offer exists, which is not the case here.
    Q.3 - Which of the following statements best reflects the Lonergan court’s implicit normative judgment about commercial behavior in pre-contractual contexts?
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    Incorrect. subjective intent is specifically rejected under the objective theory.
    Incorrect. no equitable doctrine applied because no contract or partial performance existed.
    Correct! The court reinforced the need for clear, outward signals of assent, promoting commercial predictability and protecting parties from unintended obligations.
    Incorrect. contract interpretation favors clarity, not weaker parties per se.

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    Topic Resources

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