Chapter 17 Hypothetical Case 1: Sara Jameson believes she is close to achieving her version of the American Dream. She has just purchased from Dan Salazar an empty lot on 1534 Oak Drive in her hometown of Omaha, Nebraska, and is ready to build her first house, a 1,500-square-feet ranch. She has borrowed $225,000 from First Omaha National Bank, the maximum loan amount for which she qualifies. This morning, Jameson was on location at 1534 Oak Drive with her contractor, establishing the foundation parameters for her new home. Her curious (and gossipy) new neighbor, Anna Frederickson, stopped by to chat. In their conversation, Frederickson asked Jameson what was the size of the home she was planning to build, and Jameson responded, "1,500 square feet." Frederickson immediately proclaimed, "Sara, you can't build a home of that size in our neighborhood. The restrictive covenants in our neighborhood require houses of 1,800 square feet or larger." Jameson and her contractor rush down to the Douglas County Register of Deeds and, upon researching the public record, find the restrictive covenants for the subdivision. Jameson's worst fears are confirmed-the restrictive covenants indeed dictate a larger home, and Jameson does not have access to the additional proceeds necessary (approximately $35,000) to build one. Sara would like to "undo" the contract for purchase of the lot at 1534 Oak Drive, returning title and ownership to seller Dan Salazar and receiving as reimbursement from him the purchase price she paid for the lot. Salazar is unwilling to rescind the contract. Who would win in a lawsuit for rescission of the contract: Sara Jameson or Dan Salazar?Chapter 'I? Hypothetical Case 2: John Hammonds recently purchased a used Fjord Mastodon sedan from Square Deal PreOwned Auto Sales, Inc. During contract negotiations. Hammonds did not ask any questions related to the fuel efciency of the car. and Square Deal's sales representative, Wink Eubanks, did not volunteer any information about the Mastodon's gas mileage. Hammonds had saved for a car for five years, and he paid $10,000 cash for the vehicle. After his purchase, Hammonds kept meticulous records regarding the fuel consumption of the Mastodon, and he calculated that the Mastodon was getting approximately 12 miles per gallon. He immediately returned to Square Deal (Hammonds thought the dealership should be renamed "Raw Deal"), found Eubanks in front of one of the store's vending machines. and stated "You should have told me that Mastodon only gets 12 miles per gallon. lam the victim of fraud, and I want my money back. Here are the keys to your Mastodon with its mammoth appetite!" Do you agree with John Hammonds? Is he the victim of fraud? Is he entitled to a rescission of the contract based on Square Deal's nondisclosure of the Mastodcn's gas mileage? [Instructorz See "Misrepresentation" in Chapter 1?.] Chapter 'I? Hypothetical Case 3: For Greta Harrington and her husband Robert, it was love at rst sight. The two were married for 52 years. until cancer took her husband at the age of 84. Greta is currently 83 years old, and her marriage produced three offspring: Samuel. 50 years old; Katherine, 45 years old; and Benjamin, 40 years old. In his will, Robert Harrington left all of his nancial interests, valued at $5 million. entirer to his wife; in his will. he also expressed love and affection for his three children, as well as the desire that Greta devise the remainder of the couple's estate to their children. in equal portions, upon her death. Greta Harrington has recently been keeping company with Gary Watson. a twicedivorced, 65-year-old bachelor with a reputation for womanizjng. While visiting her mother one weekend, Katherine is shocked to see a fullyexecuted will on the desk in the living room, devising all of her mother's estate to Watson. She immediately calls her brothers, schedules an emergency sibling meeting. and wonders what to do about her mother's ill-advised decision. She has noticed in recent months that her mother is often forgetful, frequently calls her "Sharon" (her aunt's name}, and often confuses the days of the week. Do the children have any legal rights in terms of successfully invalidating Greta Harrington's will? From a legal andIor ethical standpoint, should a mother {even of adult children} be allowed to disinherit her offspring? [lnstructorz See "Undue Influence' in Chapter 1?.]