Assignment task: Kathy is a 57-year-old woman. She has a son Ken who is 28 years old, and is dating Cindy, who is 48 years old. Kathy leases a Tesla car from Drive-By motors. The car is a 2020 Telsa. She pays about $1100.00 per month on the lease. After the Covid pandemic, Kathy decides she can no longer afford the car and wants to get rid of it.
Cindy hears from Ken that his mom, Kathy wants to get rid of the car and plans to sell it. Cindy always loves the car. She had ridden in it several times when Ken came by to pick her up for their dates. She loves the cool features of the car, the smooth ride, and the efficiencies of being an electric car. Plus, Ken once allowed her to drive it. All her girlfriends told her that she looked impressive behind the wheel. It was as if she was born to ride in a car like that. Cindy sees this as her opportunity to own a Tesla.
Cindy approaches Kathy and makes an offer to buy the car from her. She offers to take over the monthly payments and take care of the car's maintenance. Kathy agrees to this arrangement. Kathy indicates that they will create a contract between the two of them for these arrangements. They both agreed.
In addition, Kathy will keep the lease with Drive by Motors in her name, but Cindy will make the monthly payments. Cindy will make the payment to Kathy, and then Kathy will write a check to pay Drive by motors. Cindy made the first month's lease before signing the contract to show her intentions. Kathy is pleased about this and shares with Cindy that she was skeptical about her son dating a much older woman. But she likes her now and feels she is a great person.
Cindy makes the subsequent three months' payments on time. But later fails to make the next monthly payment. She also misses the fifth- and sixth-month payments. Kathy is upset and confronts Cindy. Cindy promises to pay but still has not made any payments by the seventh month. In the meantime, Kathy has been making all the payments to Drive by motors that Cindy has missed. Ken and Cindy are arguing as his mother, Kathy, is upset with Cindy and blames him for introducing Cindy to her and for even dating an older woman, to begin with. Kathy decides to sue Cindy.
Advise Cindy and Kathy. Is there a contract? Why or why not? Are there any other issues that you would like to discuss?