Contracts

Ch. 11-16
Instructions: Please answer the following questions. Your responses will be graded based upon accuracy; professionalism (grammar,
spelling); and thoroughness of explanation. When complete, please make sure your name is on your assignment, save as a Microsoft
Word file, and submit it in your assignment folder. Feel free to submit this assignment prior to its due date.

1. I ask you to tie my shoe. You agree to tie my shoe, however, prior to you tying
my shoe you change your mind and refuse to tie my shoe. Using the elements of
the contract, determine if this is a valid contract.

2. Bill agrees to sell James some cocaine for $100. James pays Bill $100 but Bill
does not deliver the cocaine. Is this a valid contract, a voidable contract or a void
contract? Explain your answer.

3. Marissa rent an apartment from Cabana Bay in January. The lease was for a year.
In June, Marissa received a job offer in another state. She did not want to break
her lease, therefore she sub-leased or assigned her lease to Olivia. Marissa did not
get permission from Cabana Bay. Olivia moves in and pays rent from June to
October. Cabana Bay sues Marissa for the two months of rent. Marissa believes
she is not liable for the rent because she assigned her lease to Olivia. Using
IRAC, determine whether Marissa correct.

4. Sarah’s house caught on fire. Through the prompt assistance of her neighbor
Odessa, the fire was quickly extinguished. In gratitude, Sarah promised to pay
Odessa, $1000. Using IRAC determine whether Odessa enforce this promise?

5. William E. Story agreed to pay his nephew, William E. Story II, $50,000 if he
refrains from drinking liquor, using tobacco, swearing, and playing cards or
billiards for money until he should come to be 21 years of age. William E. Story
II refrained from all the things his uncle listed until he was 21 years of age.
Shortly after his 21st birthday, William E. Story died. His executor refused to pay
the money. He believed that there was no contract because there was no
consideration. Using IRAC, how would you decide this case?

6. I was watching a telethon on the TV late on evening. I was so moved by the

telethon; I called and pledged $10,000. In the morning when I informed my
husband what I pledged, he was not pleased. I did not fulfill my responsibility.
Using IRAC and determine if the telethon sued me for my pledge what would be
the outcome?

7. John Smith is 16 years old; his parents purchase a red Volkswagen bug for his
birthday. He does not like the car because he wanted a red Porche. The parents
take the car back to the dealership. The parents tell the dealership this contract is
 void because our son lacked capacity to enter into this contract. Are the parents
right? Use IRAC format.

8. List the contracts that must be in writing according to the statutes of frauds.

9. Farmer John entered into a contract with Farmer Bill to purchase Farmer John’s
cow Bessie. They both thought Bessie was barren so they agreed on a price
below market value. The day before Farmer Bill picked up Bessie, it was
determined that Bessie was pregnant. Using IRAC determine if Farmer John void
the contract under mutual mistake.

10. Claudia and Jose contracted with Mercedes Homes to build a three story home on
Lake Emma. Mercedes began to build the home and discovered that it would
cost them more than they anticipated to build this home on the lake. Mercedes
refused to continue to build the home unless Claudia and Jose agree to pay
$10,000 more. The couple want the house completed so they agree to pay the
additional money. Once the house is completed, they refuse to pay Mercedes
Homes and Mercedes sues the couple for breach of contract.