Business Law and the Legal Environment 7th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 10

Darin bought his fiancée Sarah a 3-carat diamond ring for $43,121 from Mandarin Gems. Later, Mandarin supplied Erstad with a written appraisal valuing the engagement ring at $45,500. Years later, the couple divorced and Sarah kept the ring. When she had the ring reappraised, another gemologist assessed its value at only $20,000. Sarah sued Mandarin for breach of contract, but the jeweller defended by saying that it had never made a contract with her. Does Sarah have contract rights against Mandarin?