Reference no: EM132764006

Johnny is a junior in high school at the age of seventeen and would turn eighteen in December of that year. He decided to find a summer job to make some extra spending money and noticed that Jack at Jack's Used Cars was looking for someone who would wash and detail his inventory of cars during the summer. Johnny applied for the job and was hired for the summer. While working at the used car lot, Johnny had his eye on a red, two-door sports car. In July, he told Jack he would sure like to buy that car. Jack said, "I tell you what, I will sell that red sports car to you for $3,000 cash." Johnny said, "I do not have that much money, but I have $1,000 saved and can pay you the additional amount over the next ten months because I plan to get a job after school to pay for the car." Jack, "We have a deal." Jack prepared a valid written contract and the contract was signed by Johnny and Jack, and Johnny took the red sports car. The valid contract indicated that there was a down payment for $1,000 with ten monthly installments beginning in August of the summer Johnny was working and ending in May of the following year. In January, Johnny began to have trouble in school and with the law. He began to lead a reckless life. He wrecked the red sports car, resulting in some minor damages, but made his car payment to Jack in January. Johnny decided that he would not have the red sports car fixed and decided to let it sit in his parents' driveway. Johnny decided in February not to make the payments on the red sports car because he did not like Jack anyway because he felt Jack had underpaid him and charged him too much for the red sports car. Johnny did not make the February, March, April, and May payments.

Discuss the following:

1. Common Law Contract versus UCC Contract and discuss whether this is a Common Law Contract or a UCC Contract. In your discussion discuss the differences in Common Law versus UCC and conclude as to why the elements fit the facts.

2. Statute of Frauds and whether this contract is subject to it.

3. Offer and relate the facts to the Offer, if there is an Offer.

4. Counteroffer and relate the facts to the Counteroffer, if there is a Counteroffer.

5. Acceptance and relate the facts to the Acceptance, if there is an Acceptance.

6. Consideration and relate the facts to the Consideration, if there is Consideration.

7. Incapacity as an Infant and relate the facts to Incapacity, if there is Incapacity.

8. Ratification of a contract as related to Incapacity as an Infant, if there is Ratification.

9. Breach and determine from the facts whether or not there is a Breach, and if there is a Breach, whether the Breach is a Material Breach or a Minor Breach.