Reference no: EM131409548

Question 1
1. Please thoroughly explain the parol evidence rule. What are its benefits and what are the reasons behind the rule?

2. Contractual capacity is an issue with minors. Why? What are the issues?

3. Please fully explain the term consideration. Give some examples.

4. Please cite three separate sections of the UCC and explain their relevance to the subject of contract law.

5. Specific performance may be asked of a court under what circumstances?

6. What is the legal significance of informed consent?

7. What damages are forseeable in relation to a contract breach?

8. What is the statute of Frauds? Why does it exist?

9. What are three types of contracts covered by the statute of frauds?

10. Under the UCC, what does it mean for a judge to add reasonble terms?

Question 2 -
Matthew Green, age 16, signed a contract to buy a Camaro from Caruana Chevrolet. Matthew Green is the son of Mark Green, a local businessman, well known by Caruana Chevrolet. The Green family lived about six miles from the dealership. The Green family was friends with the Caruana family. Matthew Green lived about six miles from his school and about one mile from his job and used the Camaro to go back and forth to school and to work.

When Matthew did not have the car, he used a car pool to get to school and to work. Matthew's father occasionally drove the car in a carpool with other parents and students. Several months later, the used car which Matthew purchased became inoperable due to the fact that the car was hit while legally parked and was no longer drivable. Matthew Green gave notice of his disaffirmance of the contact to Caruana Chevrolet. Caruana Chevrolet refused to refund the purchase price.

Caruana Chevrolet had purchased this vehicle at auction for $2,500.00. The sale price to Matthew was $7,000.00.

Please discuss the issues contained within this case. Before you get to any subsequent issues, please take a look at the primary issues.There needs to be an analysis of the base of this case. Is or was there a contract?

Assume further that the dealership sold insurance to the boy. The boy purchased the insurance but had no idea about the meaning of the term insurance nor did he understand the terms of the insurance policy. The policy has wording that the purchaser of the insurance has to be over 18 years of age. The agent for the insurance company was the car dealer himself. Please fully discuss this as well.This essay needs to be a minimum of 750 words.

Question 3
In November 2013, Phil O. Dendrin went to Caruana Chevrolet to discuss the purchase of a 20013 Limited Edition Corvette XL. General Motors was only going to produce and limited number of these cars referred to as "Indy Vettes." This was named as such because one or more of them were to be used as a pace car at the Indianapolis 500. Phil talked to the used car manager who partially filled out a buyer's order form which he then presented to his boss, John Smith, the new car manager. After discussing the matter they agreed to sell Phil O. Dendrin an Indy Vette at list price. The manager wrote "list price" and signed his name on the partially completed form, signing in the middle of the page rather than in the space provided for the signature of an officer of Caruana Chevrolet. Phil O. Dendrin also signed the form and gave a deposit of $500.00.

At the time of the signing of the documents, Caruana Chevrolet did not have a vette in its possession. Two such cars were later received and in the interim the market demand for the cars had driven their value far above the list price. Caruana Chevrolet refused to deliver either car to Phil O. Dendrin and attempted to return his deposit. Phil O. Dendrin filed a lawsuit for breach of contract and asked the court for either damages or specific performance. Caruana Chevrolet argues that the order form was too indefinite and incomplete to amount to a valid and binding contract.

Please discuss the issues in this case and come to a conclusion as to whether or not these positions are right or wrong. If you do agree that there should be damages, if at all, please discuss them. If you do agree that there should be specific performance, please identify what that is and why it should or should not happen.

Please take a look at the UCC codes in the back of the book and determine if any of them may be applicable. This essay needs to be a minimum of 750 words.