Study each of the following case. Answer the questions that follow with Yes or No. Gallagher Restaurant
Question:
Study each of the following case. Answer the questions that follow with Yes or No.
Gallagher Restaurant Supply was in the business of leasing equipment to small restaurants. Quezada, the operator of a small diner, leased a coffeemaker from Gallagher. It was only after the contract had been signed that Quezada learned that similar lease agreements with other restaurants were far less costly. Also, the agreement between the parties provided for an accelerated payment of the entire balance if Quezada failed to perform any condition of the lease, “no matter how trivial the condition may be.” In addition, Gallagher would be entitled to take back the coffeemaker and collect a 20 percent penalty.
a. Is this an example of a contract signed under duress?
b. Is it likely that a court would enforce this contract?
c. Is this an example of a void contract?
d. Is this an example of a voidable contract?
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