Question
Teena recently started a business as a sole proprietor operating a food truck. The business has been picking up and Teena needs some help. Teena
Teena recently started a business as a sole proprietor operating a food truck. The business has been picking up and Teena needs some help. Teena interviews Jagjeet and, at the end of the interview, asks if he would like to work with her in the Food Truck. Even though the business is not yet making a profit, she says that she could pay him $10.00 per hour cash in hand (so they could both avoid tax liabilities) and could guarantee him 36 hours of work per week for the next 6 months. Jagjeet says he needs to think about it as he would have to quit his current job, and that he will let her know. Two days later, Teena finds out that her younger brother lost his job and that he wants to work with her. Teena calls Jagjeet to explain that her brother will be working with her, so she no longer needs Jagjeet, and Jagjeet is furious because he just quit his job in reliance on her promises. Using the table below, assess whether Teena and Jagjeet have formed a legally binding contract. You also need to answer all of the questions that follow the table (feel free to use as much space as you need edit this document as your own).
ELEMENT | Situation/Explanation | ISSUES | Satisfied? (Yes/No) |
Consensus |
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Consideration |
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Capacity |
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Legality |
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Intention |
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. Do you think Jagjeet would be successful suing Teena here? Why/why not?
2. Would this agreement need to be in writing to constitute a legally binding contract? Why/why not?
3. Teena finds out that her younger brother just won the lottery. She is thrilled because he always told her that if he won, he would give her 1/5 of the winnings because she has always supported him (both financially and emotionally). He no longer wants to work with her in the Food truck.
(a) If he refuses to pay, could Teena sue her brother to claim 1/5 of his winnings? Why/why not?
(b) If Teena contacted Jagjeet and told him she still wants him to work for her, would he have a legal obligation to do so? Why/why not?
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