ART ONE-The Required Element of Real Assent

The element of Real Assent is missing in each of the following situations:

(a) When one party places the other under physical duress or duress by threat,

(b)When one party exerts undue influence over the other,

(c) when one party misrepresents a fact to the other (whether fraudulent or non-fraudulent), and

(d) When the parties are mistaken.

Identify which one of these issues is described in each of the following situations:

1.Kaci is the primary caregiver for her elderly, feeble grandfather.He is unable to care for himself and has no other relatives.After years of caring for him without pay, Kaci finally feels like she deserves something for her time and attention.She tells him, "Grandpa, I'm walking out today if you don't agree to transfer your house to me as payment for all of the care I have provided you.If you sign a contract now agreeing to transfer your house to me, then I will continue to care for you until your death.Do we have a deal?"What Real Assent problem is represented here?

2.Jillinherits a diamond bracelet from her aunt.She needs money and so she offers to sell it to her best friend Beth for $500.Both Jill and Beth believe the bracelet is made of diamonds.Beth pays $500 for the bracelet and wears it for several days and receives many compliments about its beauty.Beth then decided to have it cleaned by a jeweler who tells her that the bracelet is not made of diamonds but it is cut glassinstead and worth about $10.What Real Assent problem is represented here?

3.Joeis interested in purchasing Phillip's boat.Joe asks Phillip if the engine is in good condition and Phillip says "It's great!I've never had any trouble with it."Phillip also tells Joe that the boat is 8 years old (though Phillip knows it is older.)Joe buys the boat and within a month he has engine trouble and takes it to a shop for repairs.The repair shop tells Joe that the engine has been rebuilt and that the boat is 12 years old.What Real Assent problem is represented here?

4.Crystal would like to go to Florida on Spring Break but she has only $100 to spend.She asks her friend Danielleif she can ride with Danielleto Florida since she knows Danielleplans to drive to Florida. Daniellesays no because she really doesn't want to have Crystal with her for the whole Spring break.Crystal says to Danielle, "Take me to Florida for $100 or I will tell Dr. Martinez that you cheated on the biology exam."Daniellereluctantly agrees to take Crystal with her to Florida for $100.What Real Assent problem is represented here?Does it matter if Danielle really cheated on the exam or not?

PART TWO - Legal Capacity of Minors to Contract

1. What is the reason for requiring legal capacity in order to form a valid contract? Who are we, as a society, trying to protect? What are the two most common situations where legal capacity is missing from a contract? What happens to the contract? Can the person who lacks legal capacity enforce the contract anyway? Why or why not?

2. Gigi is a student attending college 1500 miles away from home. Gigi attends school and works part-time at a restaurant. Using the money she earned, she made the following purchases and agreements. A week before Gigi's 18th birthday (the age of majority in her home state and in the state where she attends school), Gigi informed her parents that she wanted to move back home and attend school locally.Gigi's parents agreed and she began to make plans to move back home. She decided that she will handle each of her recent purchases and agreements in the manner noted below. All of these transactions occurred in the state where Gigi is attending college.

a) A year ago (while still 17) she bought a big screen television for $2,000 (she loves Husker volleyball!) She paid $500 down and made monthly payment on the balance until it was paid in full. Now that she is moving back home, she wants to return the television and get a full refund of her $2,000. The television is in good working order.

b) Two months ago (while still 17), Gigi bought a used car to get her to work. She paid $200 down and is making monthly payments of $200 over a period of five months, for a total purchase price of $1,200. Now, she decides she doesn't want the car any longer. The car still runs fine, but it has a big dent in the door where another car crashed into it from the side. She wants to return the car and get a refund of the money she has already paid. She also wants to be relieved from having to make the remaining payments.

c) A week before she turned 18, Gigi stocked up on groceries. She bought $78 worth of food and she has consumed all of it.She wants to get a refund of the $78 she paid for the food, but she has nothing left to return.

d)A year ago (while still 17) Gigi joined a gym that is located right across the street from her apartment. She pays a monthly fee of $40. She signed a three-year membership contract. After turning 18 and before moving back to her parents, Gigi visited and used the gym facility three times and made a monthly payment.A month after her 18th birthday, Gigi wants to cancel her contract and get a full refund of all the money she paid to the gym. (hint: consider ratification.)

Instructions: Consider each of the transactions described above and discuss fully Gigi's obligations and rights with respect to each transaction.Be sure to use proper legal terms.

PARTTHREE-The Required Element of Consideration

As you know, consideration on both sides of a transaction is required in order for a contract to be legallyenforceable.

The following five scenarios arenot enforceable contractsbecause they do not include consideration on at least oneside of the transaction.Provide a full explanation about why each one lacks consideration on at least one side of the transaction.Be sure to use proper terminology and to explain your reasoning fully.Assume that all parties are adults with full legal capacity to enter into binding contracts.

a) A husband enters into an agreement with his wife that he will refrain from his use of illegal drugs for at least 6 months and, in return, she will buy him a new jet ski.Why is this not an enforceable contract?

b) Amy is walking by a park and she sees a child playing in a busy street with a speeding car approaching. Amy rescues the child moments before he is hit by the car. The thankful mother of the child promises to give Amy her diamond earrings in return for saving her child's life.Later, the mother changes her mind and doesn't give Amy the earrings.Why is this not an enforceable contract?

c) Maria promises to buy her best friend, Nancy, a Google Home Minifor her birthday. On Nancy's birthday, Maria is broke and gives Nancy only a musical greeting card, suggesting that Nancy carry the card around for musical entertainment.Why is this not an enforceable contract?

d) In September, Willie agrees to purchaseAaron's truck for "as much as I can afford to pay after I receive my year-end bonus."Aaron agrees to refrain from selling the truck to anyone else until December 31.Aaron gets tired of waiting and sells his truck to someone else in October, two months before Willie gets his bonus.Why is the agreement between Willie and Aaron not an enforceable contract?

e) Best Buy pays a delivery company in full to deliver a refrigerator to Jane.Upon arrival, the deliveryman sees that Jane lives on the second floor and he tells Jane that he will unload the refrigerator only if she agrees to pay him an extra $100 cash.Jane really needs the refrigerator and so she agrees to make the payment.After the refrigerator is in her home, Jane changes her mind and refusesto hand over the $100 cash payment.Why is this not an enforceable contract?