Chapter 3: Intention, Consideration and Capacity

Question 1: Refer to the scenarios below and explain your opinions.

a) Scenario: Judy runs an antique jewellery store. One evening a hooded man stormed into her store androbbed $100,000 from the register. One month later, Judy decides to run a stocktake sale from5pm to midnight, but is still afraid of being robbed. She asks a police officer she knows, Peter, ifhe will attend her store while the stocktake sale is on and provide her with personal protectionfrom any potential robbers. She offers to pay him $1000 for his effort. Peter agrees, even thoughit is normally his night off duty. During the duration of the sale, Peter stays by Judy's side andprotects her. The next day, Peter attends the store to collect his payment and Judy refuses to pay

him for "doing his duty".

Can Peter sue Judy to enforce their verbal agreement?

b) Scenario: Monica, a 19-year old Accounting & Finance student has spent her whole life livingwith her parents but has decided that she wants to become more independent. She decides tomove out with her friend, Rachel, to an apartment.

Since they were struggling for cash and had hardly any possessions to take to the new apartment,Monica's brother, Ross (who also Rachel's boyfriend), purchases a couch for Rachel and Monica.The couch costs $1000 and is delivered to their apartment. After it is delivered, Monica rings upRoss to thank him for the kind gift, and says, "I will take Ben (Ross' son) to Adventure Worldnext weekend to say thanks!" Ross then says, "if you are still struggling. How about you comeover sometime and help me with chores for two hours and I will buy you a brand new, top of theline fridge in exchange?", Monica says "yes, that's perfect!" On the same day Monica helps Ross

clean the house for two hours. Later that day, Ross and Monica get into a fight because Monicamakes a comment about Ross haven taken a ""break" from his relationship with Rachel (a touchysubject to Ross). As a result, Ross refuses to buy her a fridge. In retaliation, Monica then refusesto take Ben to Adventure World the following weekend.

Advise Monica & Ross as to whether they can enforce their respective agreements.