Defenses to the enforcement of this contract

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Reference no: EM132289592

Set of Facts: Lonny runs ANC Baseball Cards and Collectibles. He has been in the business for the last 25 years. He has met several baseball players and has been to many shows. He has seen authentic cards and has seen many fake cards. The economy over the last several years has been going downhill. One of the easy things for people to give up is their card collecting. This has been to Lonny’s advantage from time to time because people have needed to sell their collections in order to get money. They have oftentimes sold their collections to Lonny very cheap.

Now add each of the following individually to the above set of facts.

1. Tim goes into ANC Baseball Cards and Collectibles to sell a Hank Aaron card that he has. The card is a fake but Tim does not know it. Tim paid full price ($800.00) for it about 5 years ago. Lonny immediately recognizes that the card is a fake, but is pretty certain that he may be able to resell it in the future. He agrees to pay Tim $200.00 for the card, but does not reveal to him that it is fake. In need of money, Tim accepts the deal.

a. Analyze whether either Tim or Lonny have any defenses to the enforcement of this contract. (3)

b. Analyze the likelihood that either of them would try to use any defenses. (2)

2. Tim has a Babe Ruth card that he knows is a fake. A real one would be worth about $1,500.00 and a fake one is worth about $15.00. He takes it into Lonny’s shop to sell it. Lonny does not recognize that it is a fake and offers Tim $1,000.00 for the card. Tim accepts.

a. Analyze whether either Tim or Lonny have any defenses to the enforcement of this contract. (3)

b. Analyze the likelihood that either of them would try to use any defenses.(2)

3. Now assume that Lonny owns both the Hank Aaron card and the Babe Ruth card. Remember that they are both fakes, but Lonny only knows that the Hank Aaron card is a fake. James comes into the card shop and sees both the cards and wants them both. He talks to Lonny about them and Lonny tells Jim that they are both authentic and give him a song and dance about how he is certain they are both authentic. After some negotiation, James agrees to pay $1,200.00 for the Hank Aaron card and agrees to pay $1,300.00 for the Babe Ruth card.

a. Analyze whether either Tim or Lonny have any defenses to the enforcement of this contract. (3)

b. Analyze the likelihood that either of them would try to use any defenses. (2)

Reference no: EM132289592

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