Business Randy purchased the marina from Grant
QUESTION 1
Grant has operated a marina on Oneida Lake for several years. The marina
sells boats and provides dock space and winter boat storage to its customers. On
August 1, 2010, Randy purchased the marina from Grant. As part of the sale, Randy
took over all of the existing contracts Grant had for the storage and docking of boats.
Jay had a contract with Grant to store his boat at the marina over the winter
and to rent a dock space at the marina during the boating season. The contract was
due to expire on March 31, 2011.
When Jay went to the marina on October 1, 2010 to arrange to have his boat
removed from the water and placed into storage for the winter, he learned that the
marina had been sold. Randy told him that he would be willing to renew Jay’s
contract for dock space and storage for the period of April 1, 2011 through March
31, 2012, at the same price he had paid in 2010, if Jay would agree immediately. Jay
orally agreed.
Thereafter, on March 1, 2011, Jay notified Randy that he was moving his boat
to another marina and had arranged to have his boat towed to the new marina. Randy
demanded that Jay pay him for the dock space and storage for 2011-2012, claiming
that he and Jay had an enforceable contract. Jay refused to pay.
Discuss whether Grant and Jay have an enforceable contract.
QUESTION 2
Bob was a student at Le Cordon Bleu Culinary School (School) in Big City.
The final requirement for Bob to graduate from the School as a pastry chef was to
bake a five layer cake. Bob considered this task too trivial for his considerable
culinary talents, and instead of working on the cake, he spent all of his time with his
new girlfriend, Cindy, a 17 year old who lived independently from her parents. Bob’s
grandfather Joe, who had made many prior cash gifts to Bob while he was attending
the School, very much wanted Bob to follow in his footsteps as a chef. Joe told him:
“If you bake a cake to fulfill your requirement to graduate from the School, I will
pay you $20,000.”
Cindy solely supported herself by working as a barista at a Big City coffee
house located far away from her apartment. Cindy told Bob that she was in danger
of losing her job at the coffee house and ultimately her apartment because Big City
Transit Authority had announced that it would be eliminating the bus route that
Cindy used to get to the coffee house due to state budget cuts. Bob asked Joe to help
Cindy, and Joe agreed to sell a car to Cindy for $3,000. The written agreement dated
January 15, 2012, provided that Cindy would pay $100 to Joe upon signing the
agreement and $100 each month until the balance was paid.
On February 1, 2012, Cindy turned 18 years of age. Six months later, Cindy
stopped making payments and returned the car to Joe, saying that she could no longer
afford the high cost of gasoline, parking fees and insurance.
Bob baked the cake, graduated from the School and obtained a high-paying
position as a pastry chef at an elite Big City restaurant. When Bob requested payment
of the $20,000, Joe refused, stating, “I was wiped out by my crooked investment
advisor. Besides, your cake is not worth $20,000 to me. Baking that cake was for
your own good. Look at the job that it got you!” Was an enforceable contract created
between Bob and Joe?
Joe sued Cindy for breach of contract for the remaining monies owed by
Cindy on the agreement for the sale of the car. What defense should Cindy raise to
the breach of contract suit, and what arguments should Joe make in opposition to
this defense?
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