Reference no: EM133209172

Question -

I. Donna is seventeen years old and has a large unattractive mole on her cheek which she believes is the source of her low self-esteem. She consults Dr. Slycoff, who recommends that she have the mole removed and says that he will do the operation for $9000. Donna says she has no insurance and will not pay more than $5000 for the operation. Dr. Slycoff believes that the new state health plan will reimbursed him for the difference between his normal fee and the amount Donna will pay, so he orally agrees to perform the operation for $5000. Later, after the operation and Donna's birthday, Donna has yet to pay and informs Dr. Slycoff that she won't fulfill her contractual obligations. Also the state health plan did not pay anything towards the operation. Dr. Slycoff sues Donna for $9000.

1. Does the statute of frauds require that the contract be written to be enforceable? Explain your answer.

2. What type of contract have Donna and the doctor created; valid, voidable, unenforceable, or void? Explain your answer.

3. Can Donna disaffirm her contractual obligations? Explain your answer.

4. If before performing the operation, Dr. Slycoff discovered that he would not be reimbursed by the state health plan, could he assert the defense of mistake and have the contract rescinded? Explain your answer.

II. Abbie owns a 1969 VW that is painted in a variety of colors with numerous flowers and a large peace sign on the front of it. While sitting in a tavern she enters into negotiations with Bob for the sale of the van. After much negotiating, they agree on the following terms which are written down on a napkin, "Abbie agrees to sell Bob his 1969 VW van for $3500. Title is to be transferred immediately and payment to be made over the next 90 days". Bob signs but Abbie hesitates because she is concerned about Bob's ability to pay. At this point Bob's friend, Tim, tells Abbie that if Bob does not pay in full, he will. With this assurance Abbie and Bob signs the napkin. 30 days later the transmission on the van goes out. Bob refuses to pay Abbie because he says that while negotiating the sale of the van Abbie agreed to warranty the van for 60 days after the sale.

5. Examine the validity of this contract. Is there any way that Abbie can challenge the validity of the contract? Explain your answer

6. Assuming the contract is valid, is Tim liable under the contract? Explain your answer.

7. Will the warranty agreement be included in the contract? Explain your answer.

III. Lily has been dating Bud for three weeks. She has never met anyone like Bud and as each day passes she feels closer to him. Lily is certain that Bud will eventually ask her to marry him and that they will live happily ever after. Bud has been trying to obtain a loan to start a business but has very little income and no assets. Bud explains to Lia that if he had title to the new Jeep Grand Cherokee that her parents just gave her, he could use it as collateral to obtain his loan. Bud proposes that Lily sell him the Jeep for $1000. Anxious to accept any proposal from Bud, Lily agrees. After title is transferred, Bud does not use the Jeep as collateral but instead uses it to impress Buffy. Bud and Buffy quickly become an item, and each changes their Facebook status to "in a relationship". Sadly, Lia then spends Valentines Day alone, eating Cheetos while watching reruns of The Bachelorette on Hulu.

8. Identify, state and apply the elements of the two defenses that Lily might assert to invalidate the contract.