Sam Stevens lived in an apartment complex where he was working on his invention. He was developing a machine that played the sound of a barking dog to scare off potential intruders. A national chain store wanted to sell the invention exclusively, but they did not have a contract. A few months ago, Sam verbally said that he would provide 1000 units to the chain store. One day, Sam came home, and he found two letters in his mailbox. The first message was an eviction notice from his landlord, asking him to vacate within 30 days because his invention is disturbing neighbors living in the complex and also according to the landlord he was not conducting business in the units he dwells. The second letter was from the company asking Sam to deliver the 1000 units to them immediately. The definition of a contract is a promise or set of promises for a breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty. For a contract to exist, the parties also must have the legal capacity to agree, exchange valid consideration, and be entering into an agreement with a legitimate purpose. The contract is formed as soon as the second party makes his or her promise. Any agreement needs four elements necessary to be fulfilled to have a signed contract. It consists of an offer made by the person who offers the finances and the acceptance of the offer by another party. The key factor of an agreement is the offer. The second element of a contract is the consideration of a bargain-for an exchange - what each side gets in exchange for his or her promise is under a contract. The third aspect is the contractual capacity. That is the legal ability to enter into a binding agreement. The legal object is the fourth element of a binding legal document. To be enforced, a contract cannot be either illegal or against public policy. Sam's invention has created massive noise that the other tenants have complained to the landlord. This will end up as a breach of the contract he signed. So, he will have to move as the eviction is requested. I do not see this as a good reason to be evicted since he was dealing with business from his apartment. He was not operating a business out of his apartment. He was only working on his invention, to have the 1000 units ready to be delivered to the chain store. Regarding the verbal agreement made with the chain store, that is just a promissory estoppel. The chain store initially didn't give anything written that suggested an amount that Sam would be paid once the 1000 units were shipped, which can make this agreement voidable. Sam must find a new place to complete his invention and prepare to vacate the premises. The law states that in a Landlord-Tenant Agreement, the Landlord has to provide the tenant with possession of the premises. The tenant has the right of possession on the premises according to the terms of the signed lease. One of the few essential promises that a landlord makes in a contract is the covenant of quiet enjoyment. Even if there is no valid contract between Sam and the chain store, there may still be a quasicontract (Chapter 13, 2017) or elements of what is called a promissory estoppel. A quasicontract is known as a court-imposed contractual obligation to prevent unjust enrichment. They are sometimes called implied-in-law contracts, but they are not contracts. Preferably, to avoid one side from being unjustly enriched at the expense of another, the courts impose contractual obligations on one of the parties as if the party had entered into a contract. There wouldn't be a quasi-contract in this case, but more like a Promissory estoppel has occurred. These three conditions below do exist in this case: - One party makes a promise knowing the other side will rely on it - The other party does rely on the given promise - The only way to avoid injustice is to enforce the promise In conclusion, we know that the elements that make a contract binding are the agreement, the consideration, contractual capacity, and a legal object. Sam Stevens did verbally agree to deliver 1000 units, but he was not given a price for his intentions orally or in writing. He is in a breach of his lease due to the facts that he disturbed the other tenants who complained to the landlord. Now he has to vacate within 30 days. Reference: Kubasek, N. (2010). Chapter13: Introduction to Contracts. In Dynamic business law: The essentials. Boston: McGraw-Hill/Irwin. BUS 206 Milestone Two Guidelines and Rubric Overview: Business law impacts our everyday lives, both personally and professionally. Businesses enter contracts, manufacture goods, sell services and products, and engage in employment and labor practicesactivities that must all adhere to certain laws and regulations. Recognizing and evaluating legal issues is a fundamental skill that will help you navigate commercial relationships and avoid potential problems in the business world. Prompt: Imagine yourself as a paralegal working in a law office that has been tasked with reviewing three current cases. You will review the case studies and compose a short report for each, applying your legal knowledge and understanding of the types of business organizations. In each of the three reports, you will focus on areas of law covered in this course. Case Study Two concentrates on contracts and landlord-tenant law. Case Study Two: Sam Stevens lives in an apartment building where he has been working on his new invention, a machine that plays the sound of a barking dog to scare off potential intruders. A national chain store that sells safety products wants to sell Sam's product exclusively. Although Sam and the chain store never signed a contract, Sam verbally told a store manager several months ago that he would ship 1,000 units. Sam comes home from work one day and finds two letters in his mailbox. One is an eviction notice from his landlord, Quinn, telling him he has to be out of the apartment in 30 days because his barking device has been bothering the other tenants. It also states that Sam was not allowed to conduct a business from his apartment. Sam is angry because he specifically told Quinn that he was working on a new invention, and Quinn had wished him luck. The second letter is from the chain store, demanding that Sam deliver the promised 1,000 units immediately. Specifically, the following critical elements must be addressed: A. Analyze the elements of this case to determine whether a valid contract exists between Sam and the chain store. Support your response by identifying the elements of a valid contract in your analysis. B. Assume there is not a valid contract between Sam and the chain store. Analyze the elements of a quasi-contract and a promissory estoppel to determine whether the chain store would prevail on a claim of either. Why or why not? Include support for your analysis. C. Identify the rights and obligations of both the landlord and tenant under a standard residential lease agreement. D. Based upon those rights and obligations, does Sam's landlord have grounds to evict? Why or why not? E. Further, what defenses might Sam raise to an eviction action? Support your response. Guidelines for Submission: Your submission should be a one- to two-page Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Citations should be formatted according to APA style. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Rubric Critical Elements Case Study Two: Valid Contract Exemplary (100%) Meets \"Proficient\" criteria, and analysis is well qualified with concrete examples and is well supported and plausible Proficient (85%) Analyzes the elements of the case to determine whether a valid contract exists between Sam and the chain store and supports response by identifying the elements of a valid contract Case Study Two: Quasi-Contract Meets \"Proficient\" criteria and cites scholarly research to substantiate claims Analyzes the elements of a quasicontract and a promissory estoppel to determine whether the chain store would prevail on a claim of either, logically explains why or why not, and includes support for analysis Case Study Two: Rights and Obligations Meets \"Proficient\" criteria and is accurate in effectively discussing nuanced rights and obligations in the relationship between the landlord and tenant Correctly determines the rights and obligations of both the landlord and tenant under a standard residential lease agreement Case Study Two: Grounds to Evict Meets \"Proficient\" criteria and provides a thorough, step-by-step analysis with specific supporting evidence applied to each element of the relevant legal test Correctly determines whether Sam's landlord has grounds to evict based upon the previously stated rights and obligations Case Study Two: Defenses Meets \"Proficient\" criteria and cites scholarly research to substantiate determination Accurately determines what defenses Sam might raise to an eviction action and effectively supports the response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy to read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Articulation of Response Needs Improvement (55%) Analyzes the elements of the case to determine whether a valid contract exists between Sam and the chain store, but analysis is incorrect or does not support response by identifying the elements of a valid contract Analyzes the elements of a quasicontract and a promissory estoppel to determine whether the chain store would prevail on a claim of either and explains why or why not, but the explanation is cursory and/or illogical or does not include support for analysis Determines the rights and obligations of the landlord or the tenant under a standard residential lease agreement (but not both) or is incorrect in which rights and obligations apply Determines whether Sam's landlord has grounds to evict but does not base determination on the previously stated rights and obligations or is incorrect in determination Determines what defenses Sam might raise to an eviction action but is not accurate in determination or support is ineffective Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Not Evident (0%) Does not analyze the elements of the case to determine whether a valid contract exists between Sam and the chain store Value 18 Does not analyze the elements of a quasi-contract and a promissory estoppel to determine whether the chain store would prevail on a claim of either 18 Does not determine the rights and obligations of both the landlord and tenant under a standard residential lease agreement 18 Does not determine whether Sam's landlord has grounds to evict 18 Does not determine what defenses Sam might raise to an eviction action 18 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Earned Total 10 100% BUS 206 Milestone Two Template To simplify completing this milestone, use this template to help you write your essay. You may use each heading as a starter sentence and then discuss the legal issues presented in the case study using the following guide, if you choose. Be sure to explain and elaborate on how each term applies to the story. Be sure to incorporate the facts of the case into your explanation and analysis. Remember that the document you submit should follow the formatting guidelines described in the Milestone Two Guidelines and Rubric document. A. Various elements must be present to prove that a valid contract exists between Sam and the chain store. The four elements to a contract are _____________. (Chapter 13) The first element of _____________ would be deemed to exist if [describe facts that are or should be present]. The second element of _____________ would be deemed to exist if [describe facts that are or should be present]. The third element of _____________ would be deemed to exist if [describe facts that are or should be present]. The fourth element of _____________ would be deemed to exist if [describe facts that are or should be present]. If the elements of a contract did exist between these parties, there could still be some possible reasons why a contract might not be valid based on facts not present in the scenario. For example, if Sam was a minor at the time he made the agreement with the chain store, the contract would not be valid because _____________. List some other reasons and elaborate on why a contract might be invalid. Discuss and explain any other information you deem relevant to this answer. (Chapters 13, 14, 15, and 16) B. Even if there is not a valid legal contract between Sam and the chain store, there may still be a quasi-contract (Chapter 13) or elements of what is called a promissory estoppel. (Chapter 15) A quasi-contract is defined as_____________. In this case, a quasi-contract may exist if the following facts are true: _____________. (Chapter 13) A promissory estoppel is defined as _____________. This principle might apply to this case if _____________. (Chapters 13 and 16) Discuss and explain any other information you deem relevant to this answer. C. The rights and obligations of both the landlord and tenant depend upon the term of their contract. Such a contract may be verbal or in writing under a standard residential lease agreement. (Chapters 13 and 50) Some facts that may support that Sam is in breach of that contract are _____________. Some facts that may support that Sam is not in breach of that contract are _____________. (Chapters 16, 17, and 50) Discuss and explain any other information you deem relevant to this answer. D. Based upon those rights and obligations, Sam's landlord has/does not have grounds to evict because _____________. Elaborate and explain. E. Some defenses Sam might raise if his landlord tries to evict him include _____________ because_____________. Elaborate and explain for each reason offered. Discuss and explain any other information you deem relevant to this answer. (Chapters 13, 14, 15, and 16)