Module # 3b on Contract Enforceability - Group # 6 Case Problem

Smart was Hull's lawyer for many years and not only handled Hull's legal affairs, but

often gave Hull important business advice.At one point, Hull owed Smart about $9,000

for professional services.Smart suggested to Hull that the account could be settled if

Hull transferred ownership of his new 10-metre sailboat to Smart.The boat was worth

about $18,000 and Hull was reluctant to part with it.However, the business was in a

cash crunch and Hull realized how indispensable his relationship with Smart had been

and how important his continued advice was to the success of the business.

Consequently, Hull transferred ownership in the sailboat to Smart.

About one year later, Hull's daughter, who really enjoyed sailing, returned from graduate

studies in Europe.She convinced her father to sue Smart for the return of the sailboat.

(case is taken from J.E. Smyth et al. (2016).The Law and Business Administration in

Canada,14^thed., p. 201).

NOTE: Make sure that your Group is Group # 6 and not some other Group as these questions are only for Group # 6.

Questions:

1.On what legal ground would Hull rely to argument that the contract to transfer ownership of the sailboat to Smart in satisfaction of the $9,000 in service fees was unenforceable?What would Hull have to establish and what facts would he rely on to establish it? (0.75 of a grade)

2.What would be Smart's response and what facts would he rely on to support that legal response? (0.36 of a grade)