QUESTION I

Rowe was admitted to the hospital suffering from a critical illness. He was given emergency treatment and later underwent surgery. On at least four occasions, Rowe's two sons discussed with the hospital the payment for services it was to render. The first of these four conversations took place the day after Rowe was admitted. The sons informed the treating physician that their father had no financial means but that they themselves would pay for such services. During the other conversations, the sons authorized whatever treatment their father needed, assuring the hospital that they would pay for the services. After Rowe's discharge, the hospital brought this action against the sons to recover the unpaid bill for the services rendered to their father. Are the sons' promises to the hospital enforceable? Explain.

QUESTION II

Rachel bought a car from the Beautiful Used Car Agency under a written contract. She purchased the car in reliance on Beautiful's agent's oral representations that it had never been in a wreck and could be driven at least two thousand miles without adding oil. Thereafter, Rachel discovered that the car had, in fact, been previously wrecked and rebuilt, that it used excessive quantities of oil, and that Beautiful's agent was aware of these facts when the car was sold. Rachel brings an action to rescind the contract and recover the purchase price. Beautiful objects to the introduction of oral testimony concerning representations of its agent, contending that the written contract alone governed the rights of the parties. Decision on the objection?

QUESTION III

Mr. Snoob is a famous rapper. On November 1, he signed a contract with Big City TV to perform on their big show on New Years Eve. Big City TV agreed to pay Snoob $100,000 for his performance. However, the contract also provides that if for any reason Snoob does not appear as scheduled, he will forfeit the sum of $50,000 as liquidated damages.

Snoob has been on a tour since May 1 and is starting to feel very weak and exhausted. On November 22, he informed Big City TV that his immune system was down and he would most likely not be able to perform on New Years Eve. However, on December 1, Snoob informed Big City TV that all of a sudden he was feeling very good and said he would appear on Big City TV on New Years Eve.

On December 5, Big City TV informed Snoob that they did not want to deal with somebody so unprofessional and unpredictable and, therefore, they hired Tubac to replace him on New Years Eve. However, on December 15, Tubac got killed. Big City TV immediatelly contacted Snoob and told him they changed their mind about him and, therefore, would like Snoob to perform on New Years Eve.

Part A

Based on the given facts, is Snoob obligated to perform on Big City TV's New Years Eve program? Discuss all relevant issues.

Part B

On New Years Eve, Snoob showed up in the Big City TV studio all pumped-up and ready to go. However, Big City TV, pursuant to orders from the Federal Communications Commision, canceled its New Years Eve show in order to broadcast a special address by the President of the United States concerning a matter of national security.

How does this event affect the contractual duties between Snoob and Big City TV?

QUESTION IV

Liu, Josh, Fan and Harry have a rock band called "Dissent." Liu and Josh are the leaders of the band. Josh plays guitar and writes the music for the band, while Liu plays the drums and schedules all gigs. Somebody recently stole Liu's drum set after their gig in St. Louis, MO, so Liu needed a new drum set. Unfortunately, he was very picky about his drums, so he actually needed to go to several music stores to put together his dream drum set.

On Wednesday, October 16, 2008, Liu and Josh first went to "Music World" store where they found three elements for Liu's new drum set. However, after they spoke to a salesperson there, they discovered that the elements were overly expensive and Liu was not sure if he had enough money. While listening to the conversation between Liu and the salesperson, Josh felt kind of bad and he told Liu, "Look man, you can buy this on credit. We should have several gigs soon so you should have enough money to pay it off by the end of this month. If you really do not manage to do it, I will pay off the freaking thing." They never made a written agreement about this deal. Liu felt pretty good about the deal so he entered into a contract with the salesperson there to buy three elements for his new drum set.

After they left "Music World," Josh went to a bar and Liu walked into "Music Center" to buy other elements for his new drum set. When Liu walked in, he realized prices were even higher than in "Music World." Nonetheless, Liu badly wanted four elements for his new drum set. Surprisingly enough, the salesperson, Mrs. Toto, was Liu's neighbor, so Liu tried to negotiate with her to get a favorable deal. Unfortunately, Mrs. Toto said she could not do anything for Liu, so Liu left the store pretty disappointed. Right after Liu left the store, Mrs. Toto called Mr. Fox, who also lived in Liu's neighborhood, and told him just how bad she felt about not being able to help Liu. Mr. Fox then said, "Look Toto, Liu has always been a good kid. Please fax me the paperwork, so I can buy those four elements for him. Make sure you sign the form as well, so it looks like a legit contract for sale. Also, please make sure the contract indicates that the drums are to be delivered to Liu's address, not mine. I just want to make sure it is clearly stated in the contract that I am buying these drums for Liu. I know you'll get some commission, so I guess that is a good thing as well." Mrs. Toto faxed the paperwork at 11am and Mr. Fox faxed everything back in accordance with Mrs. Toto's request an hour later.

Around 1pm, Mrs. Toto called Liu on his cellular phone to tell him what happened, and Liu could not believe it. He said, "Gosh, I'll take it, that's like the coolest thing that ever happened to me." He immediately called Willis, who is the owner of the "Wet Willis" bar to tell him that they will be able to play there Thursday through Sunday this week because he has a new drum set. The band was supposed to make $4,000 for these 4 gigs and, more importantly, a famous producer, Dr. Bre, was scheduled to hear the band on Friday night.

The same day around 3pm Liu ran into Kirk, a famous fashion designer. He wanted Liu to participate in two of his fashion shows where he planned to introduce his new "edgy" line designed for youngsters. Liu desperately needed money so he decided to enter into a contract with Kirk. The terms of contract provided that Liu was obligated to participate in 2 of Kirk's fashion shows for $2,000. The two shows were scheduled for November 16, 2008 and November 17, 2008. The contract also provided, "Rights under this contract are not assignable."

Meanwhile, around 6pm, Mr. Fox told his wife about the deal he made with Toto regarding Liu's drums. He said, "Am I not nice?" She said, "No, you are a fool! That idiot bullied our cat multiple times. Call Toto to cancel the whole deal. " Mr. Fox called Toto right away and told her to cancel the whole thing. However, Toto said, "No way, I need that commission, I will sue you and I am sure Liu will sue us both if we cancel the whole deal." Nonetheless, Mr. Fox was able to cancel the whole deal after speaking to the store manager.

After he found out what happened, Liu was furious. He realized that the band would not be able to play at "Wet Willis," so he called Mrs. Toto to tell her that he really needed to have his drums right away. Mrs. Toto said that it was something he needed to resolve with Mr. Fox; however, Mr. Fox was not ready to cooperate. Realizing that he would not be able resolve this problem in one day, Liu called Willis to cancel all four gigs. Willis got mad because he did not have another "hot" band in mind to replace the Dissent. He immediately hired an agent to find him a "hot" band to replace the Dissent. He paid an agent $750 for his services. The agent eventually found another band called "Gruhak" to replace the Dissent but the problem was that they were more expansive ($5,000) and they were from another town. They agreed to come to "Wet Willis" only if Willis provides a limousine, which is about $1,500. Willis had no option but to get a limousine. However, Dr. Bre, who was scheduled to hear the Dissent on Friday, said he wasn't interested in Gruhak, so he would not be coming. That made Willis very upset because Dr. Bre made a reservation for the best table in the bar that costs about $2,000 per night. Willis later called Liu on the cellular phone and told him, "you better cover some of my losses, or I will sue your sorry band." Liu said, "Fine, I have this modeling deal and I will assign you my rights under the contract I have. Willis agreed, but said, "We'll see how far that will go."

Liu was just devastated with everything that happened. He went to meet Josh at the local bar to have a beer with him. When he told Josh what happened, Josh told him, "You are not only an incompetent drummer, you are just as bad in booking gigs." Liu then punched Josh right in the nose. Josh then said, "You can forget about me paying for those drums elements you bought at the "Music World." Liu replied, "But you promised, you can't just walk away." Josh said, "Of course I can, that wasn't in writing buddy."

Based on the foregoing fact pattern, please answer these questions:

1. Can Toto sue Mr. Fox for a breach of contract? Why, or why not? 2. Can Liu sue Josh for a breach of contract? Why, or why not?

3. Can Kirk sue Liu for a breach of contract? Why, or why not?

4. Is Willis entitled to any money from Kirk? How much?

QUESTION V

1.A)Let's assume you are a painter and you are hired to paint Tom's house. However, you are very busy these days and you want to delagate your duty to paint the house to Bob Painter. What would you do to make sure that you are no longer liable for the painting job after you delagate your duty to paint the house to Bob Painter?

2.B)Let's now assume that you are Tom and you own the house. You hired Thomas Train to paint your house because Thomas had excellent reviews on the Angie's list. What would you do make sure that Thomas Train does not delegate his duty to paint the house to somebody else?

QUESTION 6

1.Boba, who was unemployed, registered with the Slow Employment Agency. A contract was then made under which Boba, in consideration of such position as the agency would obtain for her, agreed to pay the agency one half of her first month's salary. The contract also contained an assignment by Boba to the agency of one half of her first month's salary. Two weeks later, the agency obtained a permanent position for Boba with the Alkret Co. at a monthly salary of $1, 900. The agency also notified Alkret Co. of the assignment by Boba. At the end of the first month, Alkret Co. paid Boba her salary in full. Boba then quit and disappeared. The agency now sues Alkret Co. for $950 under the assignment.Who will prevail and why? Please be specific!

2.On November 23, Sylvia agreed to sell to Boba her Pontiac automobile for $7,000, delivery and payment to be made on December 1. On November 26, Boba informed Sylvia that she wished to rescind the contract and would pay Sylvia $350 if Sylvia agreed. She agreed and took the $350 cash. On December 1, Boba tendered to Sylvia $6,650 and demanded that she deliver the automobile. Sylvia refused and Boba initiated a lawsuit.May Boba enforce the original contract? Please be specific!