Contract Law Consideration and Case Analysis Order Instructions: Please read below for information concerning assignment.

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Part 1

Consideration

David is on his way home to Kalamazoo, Michigan, from college at Purdue to celebrate Thanksgiving with his family. David’s car has a flat tire in a snowstorm and skids into a ditch. David finds food and shelter with an elderly couple. Two days later, the snowplows cleared the road, the car is pulled out of a ditch, the tire is repaired, and David is on his way home. David’s mother, Shaina, is so appreciative of the couple’s care for her son that she sends them an email promising to pay $500. Living on a fixed income, the elderly couple accepts the offer by return email. David and his mother get into an argument and Shaina refuses to pay couple. Can the couple hold Shaina liable in contract for the services provided to David?

Part 2

Providing relevant laws and/or cases to support your post, select two of the scenarios below and discuss the status of the contract:

•Eric, a 15-year-old who looks like he is 18, enters into a two-year contract for a new iPhone 6 with Sprint. After two months, Eric is bored with the phone and cannot afford the monthly bills, so he tells Sprint that he is rescinding the contract.

•Fred promised to give his daughter, Fran, a new Jeep Liberty when she completed her degree at South University. Fran did not promise anything in return. When Fran graduated 18 months later, she asked her father to buy the car as promised. Fred purchased a used Ford Focus for Fran.

Contract Law Consideration and Case Analysis Sample Answer

Consideration: Case Analysis

In order for a contract to be considered binding legally, the aspect of consideration is necessary. This refers to a legal valuable input, whether monetary or in kind, that the parties involved will give in exchange for what is achieved in the contract.

Case 1

David and his Mother Shaina cannot be held liable for not paying compensation to the elderly couple.  The act of the elderly couples was merely a volunteering act towards David and not a contract to perform. Volunteering acts have no consideration or legally binding aspects and it would not be appropriate for the couple to seek compensation. The elderly couple coming to help was based on their choice and self-will and as a duty to rescue. On the other hand, Shaina act of offering a reward or compensation for their service was out of her goodwill and appreciation. This can be considered a gift, which according to business law has no consideration and legal action cannot be taken for the same (McKendrick, 2012). She is not obligated by the law whatsoever to pay for the service that the elderly provided to her son. Moreover, paying the elderly would be jeopardizing the volunteer status. According to the duty to rescue, the elderly couple is labile to help David as a rescue measure but cannot sue David for not compensating for the service they provided. Hence, the elderly couple cannot hold Shaina or David liable for the service that the couple offered to David.

Case 2

The case between Eric and Sprint presents the case of a contract where a minor is involved. According to McKendrick (2012), such a contract where a minor is involved is voidable and the minor can withdraw at any time. This is because minors are considered as not having the mental capacity to enter into a contract. In Bowling v. Sperry, the facts of the case indicate the voidability of contracts made with minors on personal property.

In the case of Fred and Fran, Fred is not obligated to buy the new jeep promised because the legal intent in family agreements cannot be expressly established. In this case, there was no legal binding to the agreement. Furthermore, Fran did not promise anything in return. In the case of Jones v. Padavatton, the court decided that the arrangement between mother and daughter could not be considered as legally binding.

In conclusion, the law of contract provides various provisions as discussed above and each situation should be based on the legal aspects of the contract.

Contract Law Consideration and Case Analysis Reference

McKendrick, E. (2012). Contract Law: Text, Cases, and Materials. London: OUP Oxford.