Reference no: EM132266656

Assignment

One night, Lucy said to Zehmer, "I bet you wouldn't take $50,000 for your farm." Zehmer replied, "Yes, I would; you wouldn't give fifty." Throughout the evening, they drank whiskey and talked, repeatedly returning to the subject of the farm. Eventually, Zehmer wrote out an agreement to the effect that he and his wife agreed to sell the farm to Lucy for $50,000.

Lucy pocketed the agreement without Zehmer's protest. The next day, Zehmer remembered the details of the night before, but when Lucy came to take the farm, Zehmer argued that he had been drunk and that the offer had been made in jest.

Answer the following questions 250 words.

Do Lucy and Zehmer have an enforceable contract?

If after taking possession of the farm, Lucy celebrates by getting drunk. Zehmer remains sober while Lucy becomes extremely intoxicated and obviously unaware of what he is doing. Late in the evening, Lucy sells the farm back to Zehmer for $10,000. The next day, Lucy cannot remember the transaction. Could Lucy recover the farm?

The courts generally do not weigh the sufficiency of consideration according to the comparative economic value of what is exchanged. Should they? Why or why not? When is consideration legally sufficient?

Val's Foods signs a contract to buy 1,500 pounds of basil from Sun Farms, a small organic herb grower, as long as an independent organization inspects and certifies that the crop contains no pesticide or herbicide residue. Val's has a number of contracts with different restaurant chains to supply pesto and intends to use Sun Farms' basil in its pesto to fulfill these contracts.

While Sun Farms is preparing to harvest the basil, an unexpected hailstorm destroys half the crop. Sun Farms attempts to purchase additional basil from other farms, but it is late in the season and the price is twice the normal market price. Sun Farms is too small to absorb this cost and immediately notifies Val's that it will not fulfill the contract. Answer the following question 250 words.

Suppose that the basil does not pass the chemical-residue inspection. How could Val legally refuse to perform the contract in this situation?

Under which legal theory or theories might Sun Farms claim that its obligation under the contract has been discharged by operation of law?

Suppose that Sun Farms contacts every basil grower in the country and buys the last remaining chemical-free basil anywhere. Nevertheless, Sun Farms is only able to ship 1,475 pounds to Val's. Would this fulfill Sun Farms' obligations to Val's?

Suppose Sun Farms sells its operations to Happy Valley Farms. As a part of the sale, all three parties agree that Happy Valley will provide the basil as stated under the original contract. What is this type of agreement called?