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Use the following fact pattern for questions 34&35&36 : Even though Nick was only 15 years old, he had become addicted to cigarettes. His Aunt Rita, realizing Nick's problem, told Nick that if he would refrain from smoking tobacco until he reached the age of 21 years old, she would pay him the sum of $10.000 at the end of each year. Nick accepted Rita's offer, and promised not to smoke again for the remainder of the year. Has a contract been formed? No, because there is sufficient consideration exchanged from Nick to Rita. No, because Rita is ooly making a grotuitous promise to Nick Yes. on the basis that there was a mutual exchange of promises, based of legally sufficient consideration. Yes, but only if the contract is reduced to writing. Question 35 Assume that Nick does not answer his Aunt, but instead refrains from smoking for the entire upcoming year. At the end of the year. Nick asis Rita for the $10,000. Rita refuses stating that she is not legally obligated to pay him the $10.000 and had made the offer only to stimulate him to give up smoking. If nick sues. Rita for breach of contract. the most likely result is that he will: Lose, because Rita did not know that he had accepted the offer. Lose, because Nick did not suffer any detriment by taving to gve up smoking for one yean, only a benefit. Win because Pota was morally obligated to pay him. Win on the bass that forbearing from smoking created a binding contract reguiring Rea to pay Nick as promised Question 36 Assume Nick expressly accepted Rita's offer, and that he had begun forbeaing from smoking. Rita who had invested hervily in the stock market, suffered serious financial setbschs and told Nick that she would be unable to pay him at the end of the vear Nick consults with, his Lwryer, asking you how he can best. protect his rights under the contract. Your advice to Nick should be. Assume that Nick does not answer his Aunt, but instead refrains from smoking for the entire upcoming year. At the end of the year, Nick asks Rita for the $10,000. Rita refuses stating that she is not legally obligated to pay him the $10,000 and had made the offer only to stimulate him to give up smoking. If nick sues Rita for breach of contract, the most likely result is that he will: Lose, because Rita did not know that he had accepted the offer. Lose, because Nick did not sutfer any detriment by having to give up smoking for one year, only a beneft. Win, because Rita was morally obligated to pay him. Win, on the basks that forbearing from smoking created a binding contract requiring Rits to pay Nick as promised. Question 36 3 pts Assume Nick expressly accepted Rita's offer, and that he had begun forbearing from smoking. Rita who had invested heavily in the stock market. suffered serious financial setbacks, and told Nick that she would be unable to pay him at the end of the year. Nick consults with, his lawyer, asking you how he can best protect his rights under the contract. Your advice to Nick should be: To do nothine since he did not have an enforceable contract with Rita. To stop performing immediately and we for specific performance, To stop performing immediately and sue Rata for $10.000 because Pota anticipatorily repudlated the contract. Continue pertormance for the remainder of the frist year, and then wue Rita for $10,000 an a berach of cantract theory