Scenario 1-Capacity and Legality
Shane Benson started participating competitively in BMX races in 2011 when he was fifteen. Many of the races required participants to sign an exculpatory clause in order to participate. One of Shane's parents signed the agreements. In 2014, Shane participated in the annual BMX championships in Florida. During the event, a course barrier collapsed and partially blocked the path. Shane was unable to stop in time to avoid hitting the metal barrier and was thrown from the bike and suffered severe injuries. Shane filed a negligence lawsuit against the race organizers. The organizers could not find the exculpatory clause that Shane signed for the race. The organizers argued that Shane must have signed the agreement to enter the race, but even if he had not signed one, his participation in the event demonstrated his intent to be bound by the terms of the agreement.
- Did Shane have contractual capacity to enter the contract? Why or why not?
- If Shane did not actually sign the exculpatory clause, could a court conclude that she impliedly accepted its terms by participating in the race? Why or why not?
- How would you rule in both of these situations?
Scenario 2 - Consideration
David is on his way home to Kalamazoo, Michigan, from college at Purdue to celebrate Thanksgiving with his family. David's car has a flat tire in a snowstorm and skids into a ditch. David finds food and shelter with an elderly couple. Two days later, the snowplows cleared the road, the car is pulled out of ditch, the tire is repaired, and David is on his way home. David's mother, Shaina, is so appreciative of the couple's care for her son that she sends them an email promising to pay $500. Living on a fixed income, the elderly couple accepts the offer by return email. David and his mother get into an argument and Shaina refuses to pay couple. Can the couple hold Shaina liable in contract for the services provided to David?
Part II
Providing relevant laws and/or cases to support your post, select two of the scenarios below and discuss the status of the contract:
- Alvin offers to sell his cabin in the Smokey Mountains to Andy for $150,000. Andy states that the price is too high and offers to purchase the cabin for $125,000.
- Brenda offers to sell one of her Yorkie puppies to Ben for $500. The puppy died an hour before Ben arrived to pick it up.
- Carol agrees to purchase 1000 OxyContin pills from Cameron. Carol gives Cameron $100 as a down payment. When Carol arrives with the remaining $900, Cameron changes his mind.
- Damon, a 70 year old with Alzheimer's signed a contract to transfer his Mercedes to Darla, an attractive 45 year old woman, in exchange for care for the rest of his life. Damon's two children seek to have the contract nullified.
- Eric, a 15 year old who looks like he is 18, enters into a two-year contract for a new iPhone 6 with Sprint. After two months, Eric is bored with the phone and cannot afford the monthly bills, so he tells Sprint that he is rescinding the contract.
- Fred promised to give his daughter, Fran, a new Jeep Liberty when she completed her degree at South University. Fran did not promise anything in return. When Fran graduated 18 months later, she asked her father to buy the car as promised. Fred purchased a used Ford Focus for Fran.
- Greg places an online advertisement to sell his leather sofa, loveseat and recliner for $500. Hanna, Isabel, and Jack e-mailed and accepted Greg's offer.