Question 1 1. Please thoroughly explain the parol evidence rule. What are its benefits and what...

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Question 1 1. Please thoroughly explain the parol evidence rule. What are its benefits and what are the reasons behind the rule? 2. Contractual capacity is an issue with minors. Why? What are the...

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Question 1

1. Please thoroughly explain the parol evidence rule. What are its benefits and what are the reasons behind the rule?

2. Contractual capacity is an issue with minors. Why? What are the issues?

3. Please fully explain the term consideration. Give some examples.

4. Please cite three separate sections of the UCC and explain their relevance to the subject of contract law.

5. Specific performance may be asked of a court under what circumstances?

6. What is the legal significance of informed consent?

7. What damages are forseeable in relation to a contract breach?

8. What is the statute of Frauds? Why does it exist?

9. What are three types of contracts covered by the statute of frauds?

10. Under the UCC, what does it mean for a judge to add reasonble terms?

Question 2 -

Matthew Green, age 16, signed a contract to buy a Camaro from Caruana Chevrolet. Matthew Green is the son of Mark Green, a local businessman, well known by Caruana Chevrolet. The Green family lived about six miles from the dealership. The Green family was friends with the Caruana family. Matthew Green lived about six miles from his school and about one mile from his job and used the Camaro to go back and forth to school and to work.

When Matthew did not have the car, he used a car pool to get to school and to work. Matthew’s father occasionally drove the car in a carpool with other parents and students. Several months later, the used car which Matthew purchased became inoperable due to the fact that the car was hit while legally parked and was no longer drivable. Matthew Green gave notice of his disaffirmance of the contact to Caruana Chevrolet. Caruana Chevrolet refused to refund the purchase price.

Caruana Chevrolet had purchased this vehicle at auction for $2, XXXXXXXXXXThe sale price to Matthew was $7,000.00.

Please discuss the issues contained within this case. Before you get to any subsequent issues, please take a look at the primary issues.There needs to be an analysis of the base of this case. Is or was there a contract?

Assume further that the dealership sold insurance to the boy. The boy purchased the insurance but had no idea about the meaning of the term insurance nor did he understand the terms of the insurance policy. The policy has wording that the purchaser of the insurance has to be over 18 years of age. The agent for the insurance company was the car dealer himself. Please fully discuss this as well.This essay needs to be a minimum of 750 words.

Question 3

In November 2013, Phil O. Dendrin went to Caruana Chevrolet to discuss the purchase of a 20013 Limited Edition Corvette XL. General Motors was only going to produce and limited number of these cars referred to as “Indy Vettes.” This was named as such because one or more of them were to be used as a pace car at the Indianapolis 500. Phil talked to the used car manager who partially filled out a buyer’s order form which he then presented to his boss, John Smith, the new car manager. After discussing the matter they agreed to sell Phil O. Dendrin an Indy Vette at list price. The manager wrote “list price” and signed his name on the partially completed form, signing in the middle of the page rather than in the space provided for the signature of an officer of Caruana Chevrolet. Phil O. Dendrin also signed the form and gave a deposit of $500.00.

At the time of the signing of the documents, Caruana Chevrolet did not have a vette in its possession. Two such cars were later received and in the interim the market demand for the cars had driven their value far above the list price. Caruana Chevrolet refused to deliver either car to Phil O. Dendrin and attempted to return his deposit. Phil O. Dendrin filed a lawsuit for breach of contract and asked the court for either damages or specific performance. Caruana Chevrolet argues that the order form was too indefinite and incomplete to amount to a valid and binding contract.

Please discuss the issues in this case and come to a conclusion as to whether or not these positions are right or wrong. If you do agree that there should be damages, if at all, please discuss them. If you do agree that there should be specific performance, please identify what that is and why it should or should not happen.

Please take a look at the UCC codes in the back of the book and determine if any of them may be applicable. This essay needs to be a minimum of 750 words.

Answered Same Day Dec 25, 2021

David · Accepted Answer

LAW
 
LAW 
Contract Act
Student ID: 
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Question 1 
1) Parol evidence rule belongs to substantive common law as per which post the execution of 
a written contract amongst the contracting parties, then any prior extrinsic evidences 
leading to the written contract which may either contradict or expand the scope of the 
written contract would be held as invalid.  The prime reason behind this rule is that once 
the parties had translated their agreement into a written contract, then considering any part 
evidence is contradictory to common logic as if these were important, then these should 
have been included in the written contract (Davenport & Parker, 2014). However, the fact 
that these have been excluded from the written contract implies that these were either 
insignificant or altered during the prior discussions (Andrews, 2011).  
Benefits: 
 It tends to avoid confusion by establishing the supremacy of the final written contract. 
 It ensures that their reliability amongst the contracting parties with regards to their 
respective contractual rights and obligations. 
 It leads to reduced incidence of litigation. 
.
2) One of the parties with whom contractual capacity is an issue is minors i.e. those who are 
below the age of 18 years. This is on account of lower understanding ability that may be 
possessed by a minor which may lead to faulty decision making. Thus, it is imperative to 
indemnify the minors in case of entering of any contracts due to their reduced capacity of  
making rational choice (Carter, 2012).
3) Consideration may be defined as something of value which is offered by the contracting 
parties which in turn lures them to make a particular promise and fulfil the same. The 
presence of consideration is essential so that a legal contract could be executed (Richard, 
2003). For instance, a person A decides to sell his car to B for a sum of $ 10,000. Here, 
consideration for A is the car while the consideration for B is the money. In the absence of 
consideration, the contract would be void and termed as a gratuitous promise.
4) The relevant sections of UCC and their relevance to contract law are indicated below 
(Pathinayake, 2014).
 Section 2(204) – As per this, any contract in which the involved parties have the 
intention to enact a contract would not be termed indefinite in the absence of 
certain terms. 
 Section 2(309) – As per this, if express provision with regards to delivery timing is 
missing, it would be fair to assume that the delivery would be carried out in 
reasonable time. Hence, no contract could be termed as incomplete due to such a 
clause not being present. 
 Section 2(305) – As per this, it is permissible for the contracting parties to enact a 
contract even when the final price has not been mutually settled as the same could 
be assumed to be a reasonable price at delivery time.
5) Specific performance as a remedy is granted only sparingly by courts when it is of the 
opinion when the granting of damages would not be adequate. However, for specific 
performance to be granted, it is essential that the underlying contract is not vague and can 
be enforced. Also, it is essential that enforcement of contract under specific performance 
would not lead to severe hardship for the defendant (Taylor & Taylor, 2015).
6) Informed consent is a significant legal principle which has application in a plethora of 
fields. Whenever the consent is obtained from a given individual with regards to seeking 
permission for a particular activity, it is essential that the individual concerned need to be 
informed about the potential implications of the underlying activity so that intelligent 
decision making could be aided (Davenport & Parker, 2014). Any consent which is 
obtained without informing the individual concerned does not amount to a legally valid 
consent. This has high relevance in business and various professions particularly medicine 
(Richard, 2003)
7) Foreseeable damages are critical in contract law as damages are recoverable only for 
these. In order to identify the foreseeable damage, it is essential that the contracting parties 
when executing the contract must be able to stipulate the same arising from breach of 
contract. This is critical as damages provided for contract breach are compensatory and 
not punitive. As a result, only expected damages are recoverable from the defender 
(McKendrick, 2003).
8) As per the statute of frauds,

Question 1 1. Please thoroughly explain the parol evidence rule. What are its benefits and what are the reasons behind the rule? 2. Contractual capacity is an issue with minors. Why? What are the...

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