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Smith and Peterson met for lunch. Smith said he wanted to sell his car wash business and thought Peterson could make good money with it. Peterson said, "I'll buy it, but I want you to agree not to open up another car wash within the city." Smith replied that it was a deal, and they shook hands. The next day, Smith faxed Peterson a written contract for sale of the car wash, with Smith's signature already on it. It stated the purchase price was $50,000. It did not include anything prohibiting Smith from opening another car wash nearby. Peterson phoned Smith about the missing term. Smith told Peterson to write it in at the bottom and sign the contract. Peterson wrote the term onto the contract, signed it, and faxed it back to Smith.
Two months after taking over the car wash, Peterson learned that Smith was opening another car wash down the street.
Please assess Smith's risk of liability for breach of contract. This will require determining whether Smith and Peterson have an enforceable contract and whether Smith breached any enforceable part of that contract.
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