1. Major Retailer and Owner negotiated a lease of a strip mall, the tenancy to begin August 1. Retailer’s lawyer then drafted a lease, accurately reflecting all terms agreed to, including the parties, exact premises, condition of the store, dates of the lease, and monthly rent of $18,000. Retailer signed the lease and delivered it to Owner on July 1. On July 20, Owner leased the same space to a different tenant for $23,000 per month. Retailer sued, claiming that the parties had a binding deal, and that Owner had breached his agreement in order to obtain higher rent. Who will win? Discuss.

2. Donald Waide had a contracting business. He bought most of his supplies from Paul Bingham’s supply center. Waide fell behind on his bills, and Bingham told Waide that he would extend no more credit to him. That same day, Donald’s father, Elmer Waide, came to Bingham’s store and said to Bingham that he would “stand good” for any sales made to Donald on credit. Based on Elmer’s statement, Bingham again gave Donald credit, and Donald ran up $10,000 on goods before Bingham sued Donald and Elmer. What defense did Elmer make, and what was the outcome?

3. John Marshall and Kirsten Fletcher decided to live together. They leased an apartment, each paying one-half of the rent. When he signed the lease, Marshall was 17; shortly after signing the lease, he turned 18 and moved into the apartment. He paid his half of the rent for two months and then moved out because he and Fletcher were not getting along. Fletcher sued Marshall for one-half of the monthly rent for the remainder of the lease. Who wins? Discuss.

4. Strickland attempted to bribe Judge Sylvania Woods to show leniency toward one of Strickland’s friends who had a case pending before the judge. Judge Woods immediately reported this to the state’s attorney and was asked to play along with Strickland until the actual payment of money occurred. Strickland gave $2,500 to the judge, who promptly turned it over to the state’s attorney’s office. Strickland was indicted for bribery, pled guilty, and was sentenced to a four-year prison term. Three months after the criminal trial, Strickland filed a motion for the return of his $2,5000. Will the court order the return of his money? Discuss.

5. Morell bought a security guard business from Conley, including the property on which the business was located. Neither party knew that the underground storage tanks were leaking and contaminating the property. After the sale, Morell discovered the tanks and sought to rescind the contract. Should he be allowed to do so? Discuss.

6. The purchaser of a business insisted on putting this clause in the sales contract: The seller would not compete, for five years, anywhere in the United States, the continent of North America, or anywhere else on earth.” Discuss what criteria a court would use and what the result would be. Note: There are two main criteria which a court will use in evaluting this clause.

7. What is meant by an accord and satisfaction? Make up a fact situation where the doctrine would be applied by the courts.

8. When Steven Simkin and Laura Blank divorced in 2006, they agreed to split their $13.5 million fortune equally. Two years later, it became evident that Simkin had a problem: His half was invested in Bernard Madoff’s giant Ponzi scheme, and he lost millions. Simkin asked Blank to revise their deal and she refused, so he sued to rescind their 2006 settlement based on mutual mistake of fact. He argued that the bilateral mistake was that neither party knew that his half was invested in a fraud. Should a court invalidate the settlement for this mistake? Discuss.

9. Mallory promises a local hardware that she will pay for a lawn mower that her brother is purchasing on credit if the brother fails to pay the debt. Must the promise be in writing to be enforceable?

10. E. S. Herrick Co. grows and sells blueberries. Maine Wild Blueberry Co. agreed to buy all of Herrick’s 1990 crop under a contract that left the price unliquidated. Herrick delivered the berries, but a dispute arose over the price. Maine Wild sent Herrick a check with a letter that stated the check was the “final settlement.” Herrick cashed the check but filed a suit in a Maine state court against Maine Wild, on the ground of breach of contract, alleging that the buyer owed more. Discuss how the court will likely decide this case.