1. Mrs. Martinez buys a washing machine and signs a financing agreement that allows her to pay for it in monthly installments. The agreement contains a clause that allows the store to repossess the appliance if she misses a payment. Mrs. Martinez misses the next-to-the-last payment. The store notifies Mrs. Martinez that she has breached their contract and that it intends to repossess the washing machine and none of her earlier payments will be returned. How might Mrs. Martinez defend against the store's action?

2. Sally orally agrees to purchase a farm from her lifelong friend Fred. She promises to pay Fred $120,000 for the farm. She trusts Fred, so she does not put the deal in writing. A few days later, Fred sells the same property to Nell for $140,000. Fred and Nell put their agreement in writing. When Sally learns of Fred's contract with Nell, she sues Fred for breach of contract. What is Fred's defense?

3.

Emily is the sole proprietor of Emily's Flowers, a local floral shop. While one of Emily's drivers is delivering flowers in the business van to the local hospital, he hits a pedestrian at an intersection, severely injuring the pedestrian. Emily is sued for the personal injury damages suffered by the pedestrian (medical expenses, pain and suffering, etc.). A jury awards the injured pedestrian $250,000, due from Emily's Flowers. Emily's Flowers has no insurance to cover the jury verdict.

Who is responsible for paying the $250,000?

Why?