Hills of Pennsylvania Contract Formation essay case study

Hills of Pennsylvania Contract Formation essay case study

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Description/Paper Instructions

Hills of Pennsylvania Contract Formation essay case study

Stacey Smith owns a lot in the hills of Pennsylvania and wants to build a house according to a particular

Hills of Pennsylvania Contract Formation essay case study
set of plans and specifications. She solicits bids from bidding contractors and receives 2 bids: one from

Hills of Pennsylvania Contract Formation essay case study
Carlton for $260,000 and one from Feldberg for $258,000.  One night, while having a drink with friends

Hills of Pennsylvania Contract Formation essay case study
during happy hour Stacy is telling her friends about her desire to build this home and her uncertainty of

Hills of Pennsylvania Contract Formation essay case study
the costs associated with the project.

Hills of Pennsylvania Contract Formation essay case study
Siegel, although laughing with others at the table, had heard Stacey’s story and leaned across the table

Hills of Pennsylvania Contract Formation essay case study
and said, “you are being taken for a ride because you are a lady. If you let me, I will build your house for

Hills of Pennsylvania Contract Formation essay case studyhalf of that price, no more than $125,000! “Delighted, Stacy jumps on the offer and says I accept. I will

vHills of Pennsylvania Contract Formation essay case studyhave money for you tomorrow to get started.

Hills of Pennsylvania Contract Formation essay case study
The next day Siegel shows up at the property and Stacey pays him a $100,000 down payment to cover

Hills of Pennsylvania Contract Formation essay case study
most of the construction costs One month after beginning construction of the house, Siegel contacts

Hills of Pennsylvania Contract Formation essay case study
Smith and tells her that because of inflation and a recent price hike for materials, he will not complete

Hills of Pennsylvania Contract Formation essay case study
the construction unless Smith agrees to pay an extra $150,000. Smith reluctantly agrees to pay the

Hills of Pennsylvania Contract Formation essay case study
additional sum. 4 months later Smith has an unfortunate accident resulting in her death. Stacy’s only

Hills of Pennsylvania Contract Formation essay case study

son, Tom wants the construction completed.

Hills of Pennsylvania Contract Formation essay case study
This discussion is a continuation of the story from the first Contracts Formation

Hills of Pennsylvania Contract Formation essay case study
discussion – with additional facts!

Hills of Pennsylvania Contract Formation essay case studyTom, Stacey’s sole survivor and her very mature and intelligent 17-year-old son, who graduated from

Hills of Pennsylvania Contract Formation essay case study
high school early and is a Senior in College, where he has completed his business law class. He wants to

Hills of Pennsylvania Contract Formation essay case study
continue live in the new home under construction, but wants to turn the property into a horse breeding

ranch and build a 16 unit stable. He contacts Siegel who learns that Tom is about to graduate from

college. As Siegel prepares the contract for Tom, he asks, “You are old enough to do this right?” Tom

agrees he is a senior in college and signs an additional contract for the completion of a 16 unit stable for

$65,000, due upon completion.  A year later the Stable Project is completed, and Siegel asks for his final

payment of $65,000.  Tom never replies, and finally Siegel files suit for recovery of his $65,000.

 

Do not discuss contract questions of Agreement – offer and acceptance, or Consideration. Limit this
discussion to legal theories covered in Chapters 14 & 15.
Using F-IRAC consider the Contract Formation questions for this contract between Tom
& Siegel. Is it valid, is it enforceable?

Hani Ibrahim:
RULE: In accordance to contract law, minors (persons under 18 years) may enter into contracts allowed

by law but the contracts are voidable at the minor’s option. A minor may get into contracts which

involve acquisition of necessities. Once a minor contracts for necessities, they are banded by the

contract and it ceases to be voidable. Disaffirmance of a contract, which is the avoidance of a

contractual obligation, can be done anytime while still a minor or within reasonable time after achieving

legal age. In cases where the commodity contracted is not a necessity, the minor is allowed to disaffirm

the contract. Following the disaffirmance of the contract, the minor is obliged to restore the adult to

pre-contract position. According to the objective theory of contracts also, a contract is legally binding if

in the opinion of a reasonable person who is not a party to the contract, an offer has been made and
accepted. By the standards of a reasonable person therefore, if the parties to the contract fit the
requirements of the objective theory of contracts, the contract is therefore enforceable.
Rima Frank: ANALYSIS:
The current case requires a determination as to whether there was a valid contact for the construction
of 16 unit stable and is the contract is enforceable to Tom to pay $65,000 for the work Siegel did.
Generally, in the case of unilateral mistake the mistaken party still cannot relief from the contract and
normally the contract can be enforceable.
In the fraud the innocent party can enforce contract and seek damages from harm. The contract can be

voidable but in the same time can be enforceable. In this case we see the fraud from Tom when he lied

about his age. He could not enter the contract when he is a 17-years old minor. By the law he can

entered it when he is 18+.

He should know it, however he studied business law in the College. But when Siegel asked him about the

age, Tom lied and deceive that he is too young for the contract. The contract could be voidable and not
valid. But Siegel without knowing the true facts did his job and his duties by contact and he finished
construction, so now contract is enforceable and now Tom has his own duties to Siegel. This contact is
voidable but still enforceable as Siegel did construction and now, he has rights to seek for recovery of his

$65,000. In current case we see fraud because the lying about the age is misrepresentation of facts, we

see intent to deceive that Tom said that he is old enough to enter the contract, innocent party Siegel
relies to misrepresentation that Tom is older than 18 sighed contract and did the construction, finally
harm occurred due to misrepresentation that Siegel did his work and did not receive money for now,

 

contract fraud we can also see in the "Saris v. Vermont State College" case, when the hired teacher lied
about his criminal history and when the College found out about his lie they fired him. They fired him
not because of his criminal history, but because of the fraud and lying of facts. The similarity of this case

and the current case is that the lying is the fraud of misrepresentation which should lead to seek for

harm which in this case if dismissal, but in the current case is money recovery.

 

Hills of Pennsylvania Contract Formation essay case study

RUBRIC QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points:  Student failed to submit the final paper. 20 points out of 50:  The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50:  The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately.  Elements of the required response may also be lacking. 40 points out of 50:  The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples.  The answer is complete. 50 points:  The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples.  No aspects of the required answer are missing. 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The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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