Question

1. A valid contract has four required elements: agreement (offer and acceptance), consideration, capacity, and legality. Even when those four elements are present, there can be a valid defense to a contract’s enforceability. For each of the following, answer whether there is an enforceable contract and explain either why or why not.

Example: Betsy hires Frank to transport a shipment of cocaine for her. Answer: Not an enforceable contract. The element of legality is not satisfied because a contact to commit a crime is illegal.

Example: Johnny offers to buy Keith’s goat for $50. Keith says that he would sell the goat for $55. Answer: Not an enforceable contract because there has been no acceptance. Keith’s answer is a counteroffer to Johnny’s offer.

Example: Tom accepts an oral offer to teach at CSU for Fall Semester 2020 through Fall Semester 2025. No enforceable contract. It is a contract that is required to be in writing because it cannot be performed in one year or less. Because the contract was only oral, it is not enforceable.

1. Johnny tells his employees that they will all get big bonuses at the end of the year if the convenience store has a good year and if Johnny thinks they deserve it.
2. Johnny tells his employees that he will sell a watch to the first one who brings him a check for $500 dollars. Johnny meant to say “$600”. Jean brings Johnny a check for $500.
3. Johnny wants to sell her fancy Porsche. He hears from a friend that Alex is in the market for a used Porsche, so he e-mails him an offer to sell the car for $400. Alex knows this is too good to be true and likely a typo but immediately e-mails his acceptance.
4. Johnny sold Matt, a seventeen year old, a car. Matt makes all of the monthly payment before he turns 18 and then continues making payments for the next year.
5. Max is 21. His Aunt Eve tells him that if he stays celibate until he is married, she will give him $10,000. Max gets married at age 25 and has remained celibate the entire time.

Answer 1

Johnny tells his employees that they will all get big bonuses at the end of the year if the convenience store has a good year and if Johnny thinks they deserve it.

ANS: The contract is not enforceable as the consideration given to employees is not a valid consideration As johnny uses the words if he thinks they deserve which is vague and is a personal judgement

Johnny tells his employees that he will sell a watch to the first one who brings him a check for $500 dollars. Johnny meant to say “$600”. Jean brings Johnny a check for $500.

ANS: The contract is enforceable as the agreement is there and offer and acceptance were bonafide and makes the contract valid

Johnny wants to sell her fancy Porsche. He hears from a friend that Alex is in the market for a used Porsche, so he e-mails him an offer to sell the car for $400. Alex knows this is too good to be true and likely a typo but immediately e-mails his acceptance.

ANS: The contract is not enforceable as the acceptance to the offer is not bonafide and the offeree has the knowledge of the mistake and is trying to take advantage of it

Johnny sold Matt, a seventeen year old, a car. Matt makes all of the monthly payment before he turns 18 and then continues making payments for the next year.

ANS: The contract is unenforceable as it invalid and in the cpapcity of minor, Matt cannot enter into a contract. ( Although, if contract happens, it is enforceable on johnny but not on Matt if he stops making payments)

Max is 21. His Aunt Eve tells him that if he stays celibate until he is married, she will give him $10,000. Max gets married at age 25 and has remained celibate the entire time.

ANS: Contract is unenforceable as it is an oral contract and social contracts have no validity on their own