Section Four

10 points

Directions:Using your knowledge of contract formation and defenses, please review the following scenarios and state whether there is a valid contract, that is an offer, acceptance and consideration, and, if so, is it enforceable.

1.Joe asked Leroy, an insurance agent for a large insurance company, to issue him a homeowners' insurance policy in exchange for payment of $500.Joe paid in full and, during a hurricane, said insurance company refused to pay for water damages caused by high winds and flooding.They claim it is "Not Covered."Joe did not ask any questions before paying and Leroy never advised Joe that he was not covered.

a.Is there a contract?

b.Was it breached?

2.Jack and Jill are neighboring garners at their local community garden. While discussing tomatoes, Jill says, I have these magical corn beans in my car.They can grow eight ears of corn per bean in less than two weeks."I will trade you ten of them for ten of your jumbo tomatoes" that will be ripen in two weeks. Jack agrees and plants the beans.Two weeks later, Jill demands the award winning tomatoes and Jack, who has two ears of corn refuses.

a.Is there a contract?

b.Was it breached?

3.Three law students agree to share the expenses and rent an apartment three blocks away from the law school.They verbally agree to pay $900 a month rent to the landlord for the next six months.After three months on contract law, they stop paying rent because the lease is not in writing.Landlord sues for breach of contract.

a.Is there an oral contract?

b.Was it breached?