Leia owns a robot repair shop. Luke walks into the shop with his robot, shows it to Leia, and asks if she can fix it. Leia tells Luke that she will fix the robot for $150. Luke says he will think about it and leaves, taking his robot with him. The next day, Luke walks back into Leia’s shop. Without saying a word, he hands the robot to Leia and leaves. Leia repairs the robot and asks Luke to pay $150, but he refuses, claiming they did not form a contract.

This discussion board question has two parts. First, do Luke and Leia have an express contract, an implied contract, or no contract at all to repair the robot, and why? Second, if they do have a contract, is it currently executed or executory, and why? Assume that Leia has finished repairing the robot, and Luke has not paid for the repair.

Answer:

Luke and Leia both have contract between them which is Implied contract. It is because implied contract is formed based upon the behavior or actions involved. There is no written or spoken agreement occurred between two parties. Here, neither Luke nor Leia has said anything but with their behavior and action, it can clearly be defined that both of them has formed a contract.

The contract is Executed currently. As Leia previously told Luke regarding the price of the repairing, and in reply Luke told Leia that he will think about it. So, when Luke came in the shop the next day and hands the robot to Leia for repairing, it can be said that Luke has agreed with the quoted price by Leia. And with this agreement, a contract has been formed and it is in the executed position. Although there is some important performance left in the contract, but Luke's obligation to pay money to Leia doesn't make the contract executory.