Complete the following questions after review the notes on Writing - Interpretation of Contracts:

1. Steve and Ken were roommates in a rental apartment. The lease was in Ken's name but they split all of the expenses.The building where they rented became a cooperative and the tenants had the option to buy their apartment.Ken learned that he could buy the unit for $55,000 if he paid a $1,000 fee immediately to maintain his right to buy.He mentioned to Steve that he planned to buy the unit and Steve asked if he could become half owner.Ken agreed and borrowed the $1,000 from Steve for the initial fee.As the time to purchase the apartment came nearer, Ken realized he could sell the apartment for a profit and placed an ad in the paper.He was offered $125,000 within a day of placing the ad.Ken then told Steve that their deal was off and that he was buying the unit alone and promptly did just that.Steve filed a lawsuit against Ken.What was the outcome?
2. Robert was a roofer and owed $25,000 to American Roofing Company. Because he was in debt, American stopped giving him credit.At this time, Robert was working on the roof at John's home.Knowing of Robert's issue, and needing Robert to get the materials to finish his roof, John told American that he would guarantee Robert's debts that were not paid.Robert defaulted on his payments and American sued John based on his oral guarantee.John claimed that American could not recover based on the Statute of Frauds.Will American recover from Robert?

Basic IRAC

Issue:State the legal issue(s) to be discussed.

Rule:State the relevant statutes and case law.

Application:Apply the relevant rules to the facts that created the issue.

Conclusion:State the most likely conclusions using the logic of the application section. Don't forget to include any alternative outcomes created by ambiguities in the relevant facts and rules.