Section Four

10 points

Directions:Using your knowledge of contract formation and defenses, please review the following scenarios and state whether there is a valid contract, that is an offer, acceptance and consideration, and, if so, is it enforceable.

1.A 17-year-oldcontractsto buy his neighbor's car. The neighbor is 18-years- old.

a.Is there a contract?

b.Was it breached if the neighbor sells it to someone else for $100 more?

2.A rock band was about to begin a grueling four-month world tour. The band's manager telephoned a massage therapist and said that he would like to reward the band for all their hard work on the tour by booking massages for all of the band members immediately after the last show in the tour. The therapist agreed to perform the massages at a deeply discounted rate because she secretly was a devoted fan of the band and excited to have the opportunity to meet the band members. Just before the first scheduled performance, the band's singer developed a rare throat infection, and as a result, the band had to cancel the tour at great expense. The manager notified the massage therapist that her services would not be needed. The therapist objected and demanded that the manager arrange for her to perform the massages for the band at a different time.

a.Is there a contract?

b.Was it breached?

3.The inventor of a laser-beam vegetable chopper ran a television ad that described the chopper and said, "This chopper is yours for only $49.99 if you send your check or money order" to a specified post office box. The owner of a retail specialty shop wrote to the inventor, "What's your best, firm price for two dozen choppers?" The inventor sent a written reply that said in its entirety, "We quote you for prompt acceptance $39.99 per unit." Two months later, the shop owner subsequently mailed a check to the inventor in the appropriate amount, with a memo enclosed saying, "I accept your offer for 24 choppers."

a.Is there an enforceable contract?