Question
Ed is elderly and is often forgetful. He owns a home on a large lot in a subdivision governed by extensive homeowners' association (HOA) regulations.
Ed is elderly and is often forgetful. He owns a home on a large lot in a subdivision governed by extensive homeowners' association ("HOA") regulations.
Nate lives next door and has a lawn care business. Nate drafted a contract stating that Nate will provide lawn care services to Ed for five years, with the full amount to be paid in advance, at the time the contract is signed.
Nate intended the amount to be for $100 per month, for a total of $6,000 due in advance. Unbeknownst to Nate, he had made a mistake when typing the contract and it stated that the amount Ed was to pay was $1,000 per month, with $60,000 due in advance.
The contract contained a clause stating that the written contract was intended as a complete & final expression of the parties. Nate knew that Ed drinks alcohol heavily every evening and waited until 10:00 p.m. to bring the contract over to Ed. Ed was on the porch drinking a cocktail.
When Ed asked for time to review the contract, Nate said that Ed had already orally agreed to hire Nate for lawn care services at $100 per month and that the written contract simply memorialized their deal. In fact, that conversation never occurred. Ed was afraid that he may have entered into the oral contract with Nate, but had forgotten about it due to a "blackout," which he occasionally experienced.
Nate also told Ed that if someone reported the poor condition of Ed's lawn to the homeowners' association, Ed could be liable for a large fine for violation of association regulations. Frightened, Ed quickly signed the contract without reading it, but subsequently refused to pay Nate.
Nate sued Ed for breach of contract, seeking $60,000.
- Was there a contract here? Go through each of the elements and then determine your answer. (3 points)
- Explain at least three defenses that Ed could reasonably raise and what would be the likely outcome of each?
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