Debra Dunn entered into an oral agreement with Charles Cobb Imports & Fine Furnishings Company [Cobb] to purchase a dining set on July 1, 2019. The set included an antique table and six antique chairs, and Dunn delivered. The agreed-upon price was $60,000.00. It was also agreed that Dunn could make payments of $4,000.00 per month beginning on August 1, 2019, until the set was fully paid off. According to the agreement, Dunn could pay off the entire balance at any time without penalty.

Dunn has had problems with several of the chairs. She mentioned these problems to Cobb, who refused to deal with the problem. Dunn has developed an attachment to the dining set and has no interest in returning it. Because Cobb refused to repair the Chairs, she had the work done elsewhere. It cost Dunn $20,000.00 to have the chairs fixed.

Dunn has made regular payments of $4,000.00 to Cobb through December 2019. The remaining balance is $40,000.00. Dunn is prepared to pay off the entire balance due to Cobb this month. She is upset because of the expense of having the chairs repaired. She feels all that she should owe Cobb is $20,000.00 after considering the repairs she had to make.

Dunn has come to the Law Offices of Ima Good for assistance.

Problem 1. Ima wants a legal analysis from you discussing the validity of the contract.

Problem 2. You discover that the table and chairs were imported from Iran at the time of sale. Federal law prohibited the import of any products from that country. Dunn did not know the dining set was from Iran.

Can she disaffirm the contract and get her money back?

What if Dunn did know when she signed the contract that the set was illegally imported?