Contract Formation Discussion 2: Post 3, Capacity, Mistake & Fraud Analysis

Tom, Stacey’s sole survivor and her very mature and intelligent 17 year old son, who graduated from high school early and is a Senior in College, where he has completed his business law class. He wants to 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 Tom finally 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.

Contract Formation Discussion 2: Post 3, Capacity, Mistake & Fraud Analysis Answer

Tom, a very mature and intelligent 17 years old, entered into a contract with Siegel to continue building her mother’s home but turns it instead into a horse breeding ranch and build a 16 unit stable.  Siegel prepared the contract. But before Tom signs the contract, Siegal asked him “You are old enough to do this right?”, to which Tom agrees he is already a senior in college. Both had agreed the amount of $65,000 as payment for the building of 16 unit stable. After one year, the stable project was completed. Tom was already 18 at the time of the delivery of the project.