Question
Gene is a 49 year old man who suffers from bipolar disorder and can function normally as long as he takes his medication. However, on
Gene is a 49 year old man who suffers from bipolar disorder and can function normally
as long as he takes his medication. However, on occasion, Gene forgets to take his
medication but he does not have a court-appointed guardian. Gene just got a job and needs a small car to get to work, so he walks onto Dave's used car lot and signs a contract to buy an old Honda Civic for $5,000. The written contract specifically states the sale of the Honda is "AS-IS, NO WARRANTIES." Dave asked Gene if he understood the sale was final and the car was sold "as-is" and "with all faults." Gene stated he clearly understood the terms of the written contract and pays Dave $5,000 cash. Gene drives off in the Honda.
Two months later, the Honda vehicle has a major breakdown which will cost $3,000 to
fix. Gene doesn't have $3,000 and is upset that the car is not working. Gene contacts Dave and says, "The contract is over and I'm walking away! I didn't know what I was
getting into when I signed the contract and you sold me a bad car. Give me my money
back or I'll sue you." Dave refuses, indicating that Gene understood the terms of the
contract and knew the car was sold "as-is" with no warranties.
What is the IRAC for this case? & spotting the issues pertaining to contractual capacity and legality.
Thank you for your help
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started