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HomeworkAssignment for Week 4


Inthe case where Ann owed $ 2,500 to Barry for services that Barryrendered to Ann is a unilateral contract. It arises where one partymakes an offer to compensate the other party for services offered.The promisee must give his assent by performing the act. Barryperformed the act as per the agreement and hence Ann was legallyobliged to fulfill the terms of contract. The debt remained unpaideven after the due date. The settlement of an undisputed debt arosewhen Barry was in urgent need of money and promised Ann he wouldaccept a lesser amount as full payment. Ann accepted and paid $ 1,500and stated that all claims had been settled in full. The debt aroseas a result of agreement for services and hence the common lawcontract is applicable (Meena 36). It states that the payment of alesser amount in full settlement of undisputed debt does not initiatea legally ample consideration.

Thereare two facts that arise from the case. First, assuming that Barryhad given Ann a written note stating that the debt was paid in full,then Ann would successfully win the case. The receipt would show adeal that he accepted a lesser amount and waived the balance. Second,assuming that there was no receipt, it means that Barry will the caseand Ann will be forced to pay the remaining balance of $ 1,000. Barrymust prove the debt whereas Ann needs to defend the claims.


Thecase of Johnson Vs Wilson in Mathew Corporation relates to thecontract of restraint of trade. It is a legal contact between theseller and buyer whereby the seller is prevented from engaging insimilar activities within a specified period and geographical area(Meena 52). Majority of the organization are aware of the clausesestablished under the restraint of trade agreements involved in saleof shares. Sale of business involves an element of goodwill that thebuyer pays in order to retain and protect customers for periods thatwill enable him create an independent business. The Business wasinvolved in manufacturing of paper novelties and binding books. Theshares purchased restricted Wilson from manufacturing and sellingpaper novelties for a period of two years in Wisconsin. Wilson istherefore restricted by law to conduct any business of papernovelties within the specified period.

Restraintof trade agreements are important in protection of company interests.However, these contracts can be regarded as void and unlawful if theygo further than what was reasonable for the protection of businessinterests (Meena 56). The agreement that Wilson will not engage inany book binding business in the city of Jonesville is notreasonable. The fact that Mathew Corporation is involved inmanufacturing book novelties and book binding activities, does notgive Johnson the right to restrain Wilson from engaging in any bookbinding business.


Acontact is a binding agreement between parties who are considered tohave contractual capacity unless stated otherwise. There are certainelements that make a contract valid. Elements that relate to thecontract itself include acceptance and mutual consent while thoserelated to parties are competency, consideration and legal purpose(Meena 61). Minors are people who have not achieved the age of legalmajority and contacts entered with a minor are voidable at theparent`s option. However, minors are liable for their torts if provedthey were negligent. Rose took her car to Mark for a thorough engineoverhaul because he had a good performance record. Mark had the dutyto repair the car competently which was not the case. He breached thecontract by carelessly fitting unsuitable piston causing the damage.Mark would have avoided the claim if it was the fault of the spareparts company who mislead the item but that is not the case. Rose istherefore entitled to recover from Mark in tort for the damages madeto her engine. Mark had entered into a contractual agreement thatrequired him to exercise due care and diligence to protect the carfrom damage which he negligently breached.


Meena,R L. Textbook on Law of Contract. Delhi: Universal Law Pub. Co, 2008.Print.

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