Read the following scenario and select the correct answer for the following questions. John operates a motorcycle repair shop from his home but finds that his business is limited by the small size of his garage. Driving by a neighbor's property, he notices a for-sale sign on a large, metal-sided garage. John contacts the neighbor and offers to buy the building, hoping that it can be dismantled and moved to his own property. The neighbor accepts John's payment and makes a generous offer in return. If John will help him dismantle the garage, which will take a substantial amount of time, he will help John reassemble it after it has been transported to John's property. They agree to have the entire job completed within two weeks. John spends every day for a week working with his neighbor to disassemble the building. In his rush to acquire a larger workspace, he turns down several lucrative repair jobs. Once the disassembled building has been moved to John's property, however, the neighbor refuses to help John reassemble it as he originally promised. How many contracts are there between John and his neighbor? Choose... Choose... Two No because at this point, the neighbor is making a promise with no consideration from John, so it is a gift, not a bargained-for exchange. No because the layout of John's property is knowable to the neighbor (since they are neighbors), not unforeseen, and therefore the contract cannot be modified. Choose... What if John's neighbor made his promise to help reassemble the garage at the time he and John were moving it? Suppose he said, "Since you helped me take it down, I will help you put it back up." Would John be able to enforce this promise? Suppose that after starting to help John but then realizes that putting the building back together will take much more work than dismantling it due to the layout of John's property. If the neighbor asks John for more money to finish the job, and John agrees, is John's agreement enforceable? Choose... ChocoTime candy company enters into a contract with Cocoa Merchants. ChocoTime agrees to purchase "All of the cocoa it needs" in exchange for Cocoa Merchants agreeing to "Sell as much cocoa as it wants." Is there an enforceable contract? O a. Yes, because the consideration is cocoa for money. O b. Yes because this is a standard output contract . No because neither party is receiving consideration or giving consideration because there is no definite promise to buy or sell cocoa. Gretchen loaned Jennifer $100,000. Jennifer made fifteen payments on the loan, but this did not repay the entire amount. More than ten years after the date of the loan, but less than two years after the date of the last payment, Gretchen filed a suit against Jennifer to recover the outstanding balance. Jennifer claimed that the suit was barred by a ten-year statute of limitations. Does Gretchen need to prove a new promise with new consideration to collect the unpaid debt? O a. No. The Statute of Limitations did not pass because the count starts at the date of the last acknowledgment of the loan, not when the loan is created. In this case, the ten-year count began when Jennifer made her last payment. O b. Yes. Because the Statute of Limitations passed, Gretchen can no longer collect on the debt as a matter of law. The law prevents her from doing so unless a new contract is made. O c. No because Gretchen's failure to sue Jennifer prior to the Statute of Limitations, results in her waiving her right to collect, as a matter of public policy. Debtors should not have to live in fear forever that they may be sued by a creditor. Blair is employed by Wonderland Services. At her one-year anniversary, her employer tells her she needs to sign a Covenant Not to compete that she will not solicit the employer's customers. If she does not, he implies that she might lose her job. Blair signs. Is she bound by the Covenant (was there consideration)? O a. No because Blair's employer gave her nothing in return. Ob. Yes because the consideration Blair received was the right keep her job. . Yes, because the court does not care about the adequacy of consideration. As a consenting adult, Blair had Freedom to Contract