Problem
I. Fran promises to pay her father Sam, who is pre-diabetic, $1000 if Sam gets his blood sugar down to a safe and healthy level within the next two years and maintains such levels for six months. Sam agrees, and through better diet and exercise along with medications reaches the stated goal and maintains such for more than 6 months. He then asks for the money. Fran will not pay, say¬ing that not only did she forgot about the deal, it was a jest. Furthermore, she argues there was no valid consideration for it. Sam files a suit against Fran.
i. Is there sufficient consideration to form a contract? Or was the promise a mere jest? Explain with supporting quotes from the textbook.
II. Connelly Inc., owns and manages horse stables. In Contract #1, STARK Company agrees to lease the buildings for seven years. Un¬der the lease, STARK Company is obligated to pay all of the manure removal costs. Two years into the term, STARK Company asks CONNELLY INC. to modify the lease to provide that the manure removal costs be split equally between them. In Contract #2, CONNELLY INC. agrees, but later decides it does not want to share the costs and refuses to pay.
First, review the element of Consideration in each Stark/Connelly contract by answering the following:
i. What was each party's consideration in Contract #1? Was the consideration sufficient?
ii. What was each party's consideration in Contract #2? Was the consideration sufficient?
iii. In Contract #2, was Connelly bound to share the costs? Why/Why not? Explain with supporting quotes from the textbook.