1. Peter graduated high school at the age of 17 and decided to buy a house to live in while he was in college. He used some gift money he had received to pay the down payment and the bank granted him the mortgage. Four years later, Peter has graduated from college and moved to a different city. When he has difficulty selling the house he bought four years earlier, Peter decides to simply stop making payments on his mortgage. The bank aggressively tries to collect money from Peter several months later.

a. Is the mortgage contract that Peter signed with the bank void, voidable, or binding? (1 point)

b. What makes this contract void, voidable, or binding? (1 point)

2. Enrique is taking a road trip along the West Coast when his car breaks down. He has it towed to the closest mechanic, who tells him that he will need a new transmission at a cost of $6,000. Enrique is shocked at the price of the work, but he needs his car repaired so he signs a contract to pay that full amount. While Enrique is waiting for his transmission to be replaced, he meets a townsperson in a local caf who tells him that another mechanic in that town charges less than half that amount for the same service. After calling several other mechanics, Enrique realizes that the mechanic has taken advantage of his situation.

a. Is the contract that Enrique signed with the mechanic to replace his transmission void, voidable, or binding?

b. What makes this contract void, voidable, or binding?

3. Sue Ellen's parents recently passed away and have left her property that she has decided to sell because she has no use for it. When she lists the property for $250,000, she receives a lot of interest from potential buyers. One buyer approaches her and offers to pay only $175,000 for the property. When Sue Ellen declines the offer, the buyer tells her that he has evidence that her parents used this property to conduct illegal activities, and that he will reveal this to law enforcement if she does not sell him the property for the price that he asks for. She agrees to sell it to him for that price.

a. Is Sue Ellen's agreement to sell her parents' property at a lower price than she asked for void, voidable, or binding?

b. What makes this contract void, voidable, or binding?

4. Jack sells his car to Rajiv. They sign a contract, and Rajiv pays Jack in full and drives away. When he is at the motor vehicles office to register his title, Rajiv learns that there is still an unpaid loan, or lien, out on the car. When he asks Jack about the lien, Jack is a bit embarrassed. He confesses that he had not completely finished paying off the car, but that he was planning on doing so within a few days of the sale. However, his financial situation changed and he was unable to do so.

a. Is Jack's sale of his car to Rajiv a void, voidable, or binding contract?

b. What makes this contract void, voidable, or binding?

5. Belinda makes an agreement with Orson to provide lawn care services at his home. The contract that the two sign states that Belinda will provide services once a week and that Orson will pay her a set amount on the first Tuesday of each month. After the contract is signed, Belinda reviews it and notices that the date upon which monthly payments are to begin is three years away, even though services are set to begin the following week. She notifies Orson, and they both agree that this was clearly a mistake that was not intended.

a. Is the agreement made between Belinda and Orson a void, voidable, or binding contract?

b. What makes this contract void, voidable, or binding?

P.S.

THE REFERENCES ARE LISTED AS THE NUMBERS AND THE QUESTIONS ARE LISTED AS THE LETTERS

REFERENCES= (1. 2. 3. 4. 5.)

QUESTIONS: (a. b.)