PETE SMITH and his friend WILSON, met with JACK, a local pool and spa installer, to discuss the installation of a swimming pool and spa on SMITH's property. SMITH told JACK exactly what type of pool and spa he wanted installed and JACK told him he could install such a pool and spa for $20,000.00. Due to the high cost of the pool and spa, JACK asked SMITH's friend, WILSON, if he would guarantee the payment of his services if SMITH failed to pay him. WILSON nodded his head and said to JACK, "YES, I WILL." WILSON then left the room leaving SMITH and JACK alone.

After WILSON left, SMITH and JACK drew up a written contract for JACK's services, including materials and labor. SMITH looked over the contract and agreed to its terms. Both SMITH and JACK signed the contract. JACK proceeded to start working on the installation of the swimming pool and spa. JACK soon found out that the cost of the materials needed to install the swimming pool and spa were much higher than he had anticipated. Because of this, JACK told SMITH that due to unforeseen difficulties, he would not install the swimming pool and spa unless he received an additional $5,000.00. Wanting his swimming pool and spa, SMITH agreed to pay the additional amount after the swimming pool and spa were installed. Based upon their agreement, SMITH and JACK entered into another written contract for the additional payment OF $5,000.00. JACK finished the installation of the pool and spa in accordance with the original plans and asked SMITH to pay not only the original $20,000.00, but also the additional $5,000.00. SMITH paid the original $20,000.00, but was unable and refused to pay the additional $5,000.00 which they had agreed to in writing.

As a result, JACK now sues SMITH for the additional $5,000.00.

JACK also sues WILSON for the $5,000.00 stating that WILSON had agreed to pay the amount if SMITH did not do so.

SMITH and WILSON now come to you for advice. ASSUME that neither SMITH or WILSON can prove either "duress" or "Undue Influence" against JACK.

Question- Part 1 JACK vs. SMITH

List the legal defenses, if any, could SMITH use to avoid having to pay JACK the additional $5,000.00, and then, in detail, explain those defenses in your answer. Set forth any Laws which either SMITH or JACK could use to support their positions.

Question - Part 2 JACK vs. WILSON

List the legal defenses, if any, could WILSON use to avoid having to pay JACK the additional $5,000.00 and then, in detail, explain those defenses in your answer. Should JACK prevail? Set forth, in your answer, any Laws that either WILSON or JACK could use to support their positions.