I’m working on a Business Law exercise and need support.
Adam grew up in a poor neighborhood with the dream of opening his own “rib joint.” After graduating from culinary school, Adam met Bill, who was looking for new ventures in which to invest. Bill was impressed with Adam’s drive, and the two entered into an oral agreement whereby Bill agreed to open a rib joint called, “Adam’s Ribs”, if Adam won a gold medal at a rib cook-off to be held the following month. Bill also agreed that he would sell the restaurant to Adam in three years for $20,000 cash as long as Adam managed the restaurant in a manner that produced reasonable profits during the three years. Adam asked Bill to sign a written agreement, but Bill declined, telling Adam that his “word is his bond.”
Adam was a little disappointed after the rib cook-off because he won only a silver medal instead of a gold medal. Nevertheless, Bill opened “Adam’s Ribs” anyway, and without further discussion, Adam began operating the restaurant. The restaurant was quite popular with the locals, and one month before the three-year period was to expire, Adam approached Bill about the $20,000 payment. Bill acknowledged his earlier agreement, but refused to accept the proffered $20,000, claiming that the restaurant was producing too great a profit.
- Discuss whether or not there is a valid contract between Adam and Bill. In your answer, make sure you address ALLthe requirements of a contract (ie – Offer, Acceptance, Consideration, Capacity, and Legality) and any other legal issues we discussed in class. (12 points)(2 points each)
- If you were Adam’s attorney, what are your arguments that the contract should be enforced? (4 points)(2 points each)
- If you were Bill’s attorney, what are your arguments that the contract should not be enforced? (4 points)(2 points each)