LA 245 Hypotheticals Chapter 11

Marco hires Franco to burn down a clothing store that belongs to one of Marco's competitors. Marco pays Franco $1,000 upfront and promises another $3,000 when the job is done. Franco burns down the clothing store and then asks Marco for the rest of the payment. Marco just laughs at Franco and walks away. If Franco sues Marco for payment under the contract:

Marco will not have to pay because the subject matter of the contract is illegal

Selma wants to buy Matilda's house. Selma has been admiring the house for a long time and has asked Matilda repeatedly to sell the house to her, but Matilda has always refused. Finally, Selma tells Matilda that if Matilda does not sell Selma the house, Selma will kill Matilda's daughter. Afraid for her daughter's life, Matilda signs the contract to sell the house to Selma. If Matilda later tries to rescind the contract:

Matilda may rescind the contract on the grounds that she signed the contract under duress

Ricki spends the next several innings riding the opposing team's first baseman. In the eighth inning, Franklin grabs the ballboy's chair and throws it into the stands, injuring RIcki's other elbow. Ricki _______ recover damages from the team over the throw chair.

can, she did not assume those risks

Ricki goes to a baseball game. The back of her ticket clearly reads" "Fan agrees to hold team blameless for all injuries - pay attention to the game at all times for your own safety." In the first inning, a foul ball hits Ricky in the elbow. Ricki _________ recover damages from the team over the foul ball.

cannot, she assumed the risks of attending the game

Sweet Plantation, Inc. made a written contract with Candy, Inc. whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound. A dispute arose as to how much sugar Sweet is to supply. The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy. True or False?

false

Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case?

the contract is voidable if Samuel was incompetent at the time the contract was formed the contract is void if Samuel has been previously determined to be mentally incompetent

Q2 has entered into a cotnract with a venue in New York to put on a concert. Due to covid New York orders the venue to close as part of a mandatory general quarantine order. It is not legally impossible for the venue to fulfill its obligations under the contract. Will the force majeure clause excuse the venue?

yes

A buys a hardware store business from B Corp, including the property on which the business was located. Neither party knew that underground storage tanks were leaking and contaminating the property. After the sale, A discovered the tanks and sought to rescind the contract. Should A be allowed to do so?

yes, mutual mistake, either can exit the contract

Ruby, a seventeen-year-old, purchases a car from Smitz Used Auto Sales and agrees to pay for it over a period of twenty-four months. Ruby makes the payments for four months but then decides the car payment is too much for her limited budget. Ruby tells Smitz that she wants to stop making payments and that she wants out of the contract completely. The contract between Ruby and Smitz can be canceled by:

Ruby, because she is a minor, but she must return the car

Marie and Molly enter into a written contract to sell Marie's home to Molly. At the time the contract is executed, Marie tells Molly that for the last six months she has been sharing the home with a family of extraterrestrial beings. Marie states that she has asked the extraterrestrials to move out, but they won't; therefore, she is selling the family home to get rid of them and is willing to sell the home to Molly for well below market price. After the sale of the home is complete, Marie's children challenge the sales contract on the grounds that Marie did not have the mental capacity necessary to enter into a contract, even though Marie has not been declared incompetent by the courts. The contract between Marie and Molly can be rescinded:

if Marie's children can prove that Marie lacked the mental capacity to comprehend the nature, purpose, and consequences of the contract

Raul wants to plant a garden, and he agrees to buy a small piece of land for $300. Later, he agrees to buy a table for $300. Neither agreement is put in writing. The agreement to buy the land _____ enforceable, and the agreement to buy the table ________ enforceable.

is not, is

You go out drinking and playing cards with your buddies. After you have consumed a huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next morning, after you sober up, your buddy tells you what you did. Do you think your buddy can legally hold you to the deal to sell him your motorcycle?

no, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your friend knew you were intoxicated

Mark's home had burned to the ground. When he met with his insurance adjuster, she accused him of burning down the house and said she would have him criminally prosecuted if he didn't settle the claim for much less than the house was worth. Mark agreed to the settlement. If he changes his mind, he can probably rescind the settlement on the basis of

duress

Harold offers to sell Emma his farmland in Bryson County. After discussing the sale at length in front of their friends Nicole and Jackson, Harold and Emma orally agree on a price of $120,000 for the land. The next day, Emma goes to the bank and withdraws $120,000 to pay Harold for the land. When Emma presents the $120,000 to Harold, Harold tells Emma he was just joking and does not wish to sell the land. Emma tries to enforce the deal, and Harold continues to refuse by saying that the deal was not in writing, and, therefore, it is unenforceable. The contract between Harold and Emma for the sale of the land:

is not enforceable because it violates the statute of frauds