Contract Clause Analysis – A local McDonald’s adve

1 Written Assignment #2 (210 points) – Contract Clause Analysis

3-page wri en assignment consists of ten (10) ques ons spread out amongst ve Scenarios (A-E). Each ques on within a scenario is worth 21 points. The concepts you need to iden fy or analyze are all contained in your textbook. Write your responses into this document and then upload your submission. Mul ple submissions are not permi ed.

Scenario A (1 ques on – 21 points in total)

(Hint: review your Intro to Contracts & O er chapters and its related Electronic Handout Pack material).

A local McDonald’s adver ses the following promo on: For the next 5 days, only, “Buy 1 Big Mac at the regular price and get a 2nd one for $1.” What is the name of the kind of contract that gets created by the correct form of acceptance? Your Answer: “A ll in the blank here contract.” (21 pts).

Scenario B (2 ques ons – 42 points in total)

(Hint: review your Considera on chapter and its related Electronic Handout Pack material).

Builder agrees to construct a 3-bedroom house by June 30 in accordance with detailed architectural plans submi ed by Homeowner. Their signed contract speci es that the price includes the labor and all materials. 4 months into the project, Builder emails that he is no longer sa s ed with his pro t margin and demands more money. Homeowner’s reply suggests that if the Builder wants more money, he can do something extra like pu ng an upgraded walk-in shower in the master bath. Builder’s response: “you’re not ge ng anything more than what’s in the contract.” Builder knows that the buyers of Homeowner’s current home have insisted that Homeowner and his many belongings must be out by June 30 and that Homeowner’s daughter’s wedding recep on is scheduled to take place at the new house on July 2. Contracts with the caterers & musicians have been signed & invita ons have already been sent out. Builder threatens to walk o the job unless Homeowner agrees to the extra money Builder wants. Homeowner searches for an alterna ve but builders in the area are all commi ed un l September. Homeowner caves into the addi onal money demand and signs a contract modi ca on that is a ached to the original contract. The house is completed by Builder by the 30th and Homeowner’s nal payment is due. Homeowner simply pays what he originally agreed to pay and gets sued by Builder for breach of the modi ed contract. Using the facts already set forth without adding anything extra, ll in the blanks of the Answer stated below as it pertains to the best a rma ve defense on behalf of Homeowner as to the modi ca on’s structural defect:

1. “It fails It fails for lack of ( ll in this blank).” (21 pts)

2. “The reason it fails for lack of XX is the ( ll in this blank) Rule.” (21 pts) 2

Scenario C (3 ques ons – 63 points in total)

(Hint: review your Reality of Consent chapter and its related Electronic Handout Pack material on the six categories of concepts that make a contract or its modi ca on, voidable. Choose the ONE concept best supported by the facts.).

This Scenario is based on the facts presented in Scenario B. Assume for the purpose of this part of the ques on only, that a court declares the modi ca on is structurally valid. Based on the facts stated in the prior Scenario (nothing more and nothing less), iden fy the single strongest a rma ve defense concept Homeowner can assert in arguing that their modi ca on is voidable:

1. Your answer: Homeowner should raise ( ll in this blank) as this a rma ve defense. (21 pts)

2. These are the elements that must be proved: ( ll in this blank). (21 pts)

3. These are the facts that support it: ( ll in this blank). (21 pts)

Scenario D (2 ques ons – 42 points in total)

 (Hint: review your Illegality chapter and its related Electronic Handout Pack material before lling in the blanks below).

As a condi on of employment, all Ski Area employees, from waitresses to ski li operators and retail shop employees agree in wri ng that they will never work for a rival company a er their employment with this Ski Area terminates, and that this contract clause is binding on employees for the rest of their lives.

1. This kind of clause is called an ll in the blank. (21 pts)

2. The legal principle that will determine whether or not this clause will be enforceable against an employee who then works for a compe tor a er qui ng or ge ng red by Ski Area is ll in the blank. (21 pts)

3 Scenario E (2 ques ons – 42 points in total)

(Hint: review your Wri ngs chapter and its related Electronic Handout Pack material before lling in the blanks below).

Hot Young Thing signs a contract to star in a movie. When Hot Young Thing nds out that Movie Studio is ying her to the movie loca on on an Economy Class cket, she calls you, her Agent/A orney in tears. She says that when she was wooed for the part, she was promised rst class ights. You check the contract, which states that the class of airline seat is to be determined solely by Movie Studio at the me of booking. You also no ce the following clause before the signature line: “This Agreement contains the en re understanding between the par es, and supersedes all prior nego a ons, understandings, and agreements (whether wri en or oral) of the par es hereto, rela ng to the subject ma er herein.”

1. This kind of contract clause is called a ll in the blank. (21 pts)

2. What is the proper legal advice you should give her? (Circle OR BOLD either “a” or “b”) (21 pts)

 a. Her agreement with the studio is a par ally integrated contract and therefore you will be able to get evidence of the conversa on into any lawsuit in which this is an issue.

b. Her agreement with the studio is a fully integrated wri en contract and absent any evidence of fraud, misrepresenta on or mistake, you will be unable to get the conversa on in.

Contract Clause Analysis – A local McDonald’s adve

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