When a contract is not written properly, the contract can be rescinded or it may not be legally enforceable. As such, it is important to identify any problems that may exist in a potential contract.

This contract is entered into on January 13, 2011. In this contract, Mary Martin promises to give her granddaughter, Sarah Martin, the sum of $500.00 on January 13, 2015. Mary Martin will pay the sum of $500.00 in full, in cash on this date, to be remitted to Sarah Martin before 3:00 PM.No interest shall be paid on any sums due, and no amounts over $500.00 will change hands.

In exchange for Mary Martin giving Sarah Martin $500.00 on the above-mentioned date, Mary Martin asks that her granddaughter, Sarah Martin, refrain from consuming any alcoholic beverages from the time this contract is formed until the money is remitted to Sarah Martin on January 13, 2015. Since Sarah Martin will turn 21 on January 13, 2015, this means Mary Martin is asking Sarah Martin to refrain from drinking any alcoholic beverages until her 21^stbirthday.

If Sarah Martin drinks any alcoholic beverages prior to her 21^stbirthday, on January 13, 2015, then Mary Martin will not furnish Sarah Martin with any sum of money. The promise to pay $500 will be null and void.Sarah Martin is expected to be forthcoming about whether she has engaged in any violation of the terms of the contract.

Evidence that Sarah Martin has breached her part of the agreement and drunk alcoholic beverages may come in the form of testamentary evidence from witnesses reporting to Mary Martin that Sarah Martin has consumed any alcoholic beverages. If Mary Martin identifies that Sarah Martin appears to be showing the signs of having consumed alcohol, or if there is any other evidence to support Sarah Martin's conception of alcohol, such as an arrest for underage drinking or DWI, anecdotal reports of alcohol consumption, or visual proof that Sarah Martin is under the influence of alcohol, Sarah Martin shall not receive any part of the $500.00.

• Does this contract contain all of the necessary elements of a binding contract?
• What problems do you see in this contract?
• Could these problems render the contract unenforceable? Explain.
• Can any problems that may exist in this contract be fixed? If not, why not. If so, how would you fix them?
• Why is it important for you as a paralegal to be able to read contracts and find potential problems?
• How will you use this information as a paralegal in a law office?