Voidable Contracts and Contract Issues, Worksheet help

Part One: (Discussion Post)

VOIDABLE CONTRACTS

In contracts, voidable is a term typically used with respect to a contract that is valid and binding unless avoided or declared void by a party to the contract who is legitimately exercising a power to avoid the contractual obligations.

A contract may be voidable on the grounds of:

  • Fraud
  • Mistake
  • Misrepresentation
  • Lack of capacity
  • Duress
  • Undue Influence
  • Abuse of a fiduciary relationship

For this week’s discussion board address the following:

  1. Should we allow for voidable contracts? Why or why not?
  2. From the list above, provide an example scenario for one (not all) of the listed grounds. For example: Duress: Max tells Rhonda that he will kidnap Rhonda’s children if she does not enter into the contract. Rhonda signs it, but later wants to get out of it. This will be a voidable contract based on duress.
  3. From the list above, add another reason that you think should be ground to make a contract voidable and explain why it would be a good addition.

Part Two:

CONTRACT ISSUES AND WORKSHEET

Before you start on this week’s part of the project, you learn more facts about the negotiation of this contract:

Bob decides that he wants the toys and calls you to set up a meeting to discuss the price and to examine the collection of toys to make sure they are in excellent shape.

On October 4th, you meet at a local restaurant whereupon Bob examines the toys, which are up to his standards. You offer to sell them to him for $750.00. Bob scoffs and offers $650.00. Although you are a bit frustrated with his counteroffer, you remember that you really need the money so you offer $725.00. Bob grumbles and increases his offer by a mere $10 to $660.00. He claims he will not pay a penny more. You lower your price to $720.00 and inform him that this is your best, final offer.

Bob states that he will not pay that price and departs the restaurant. Feeling defeated you collect your toys and go home. As you walk home, you wonder if you should have continued the negotiation and gone lower seeing that $700 is your goal price.

On October 13th, you get a call from Bob. It turns out that he combed the entire Internet and can’t seem to find a set that is complete like the one you are offering. Sounding a little bashful, Bob offers to pay you $700.00 for the set. Just to toy with Bob a bit, you provide a price of $710.00. After hesitating for a few moment, Bob accepts.

You mutually agree that you will meet at noon on October 17th back at the restaurant that you met the previous week. You make a stipulation that you want payment to be in cash, particularly smaller bills.

Earlier you were introduced to the overview of the project for this course. For this week you will start on your way to drafting a contract for this situation by filling in the worksheet that appears as an attachment below. You will need to open the attachment and save it to your files. You will fill in the worksheet and answer the questions that follow the chart.