Question

Business Law questions: 1) Essay Question: Dave signs a twelve-month lease for a new apartment at the Chateau Budweiser apartments. The rent is $1,000 a month. Before he moves in, Dave asks Jay if he would like to share the apartment. Jay verbally agrees to move in with Dave and pay half of the rent. Three months later Jay tells Dave that he will be moving out immediately to go live with his new girlfriend. Dave says, “Congratulations, but what about our deal?” Jay tells Dave not to worry he will continue to pay his half. Unfortunately for Dave, Jay doesn’t make good on his promise and never pays. Dave sues Jay. Assume that these facts are all true, but that there are no outside witnesses to any of these conversations. Act as judge and jury for this case and write a legal opinion discussing the issues and the arguments for both the plaintiff and defendant, identify the most important issue, state your decision, and the reasoning in support of your decision.

2. a) What are four elements of a contract?

b) homer offer to paint Moe's tavern for $2,000 all due on completion. Moe accepts the contract is verbal, before homer begins the job or incurs any coast, Moe calls and say he can't pay $2,000 and wants out of the deal. Homer sues What does Moe have. Who wins? What are the damages, if any?

c) Explain the objective theory of contract. An example

d) What is the most significant different between a verbal and written contract

Answer 1

1. Dave sues Jay, verbal contract is also enforceable but this will not hold any legal ground due to lack of any written agreement as well as there is no witness to this conversation. Moreover the agreement has been signed by Dave only to pay the full rent and sharing the apartment was verbal agreement not the written in main agreement. Plaintiff has no solid case here.

2.

a. 4 elements of contract are as below

1. Identification of parties - Competent Parties

2. Identification of property- The Offer

3. Clearly mention of terms & condition and liability- The legal subject matter & Consideration

4. Witness to the agreement- The acceptance of the contract

b. There is legal enforcement of verbal agreement therefore in that case since there is no contract the statute of limitation will be shorter, but case will depend on matter of evidence. whatever the cost which already has been incurred due to job cannot be recovered by any legal means.

C. The agreement between 2 parties exist only when the act can be judged by a competent persona & the behaviors of the parties fulfil the requirement of objectively construe the agreement. An example is rent agreement between the landlord and the tenant.

D. The two major difference are providing the terms and the duration to sue in case of breach as oral contract has shorter statute of limitation.