Asked by Mindy Bounheuangvilay on Jul 15, 2024
Verified
Cheap Motorcycle.Tony,a hateful,disgruntled business law professor,notices that Peter,a student who is past the age of majority,has bought a new motorcycle.Peter has struggled through school,is in his last semester,and needs to pass business law in order to graduate.Tony tells Peter that he would like to see Peter pass,and in the next sentence,Tony says that he wants to buy the motorcycle for $100,a price far below the value of the motorcycle.Peter asks if Tony is serious about the price,and Tony replies,"I have the power here!" Tony proceeds to draw up a contract for the sale of the motorcycle for $100 with lots of fine print by which he can sue Peter and recover any maintenance costs for the next five years.Seeing that he is at an advantage,Tony also throws into the deal that Peter will mow Tony's one-acre yard for $5 all summer long.After Tony tells Peter to either take the contract or leave it,Tony reluctantly signs.Which of the following is true regarding the yard mowing agreement?
A) It is enforceable.
B) It is not enforceable because it is unconscionable.
C) It is not enforceable because a professor and student are involved.
D) It is not enforceable unless it can be proven that Peter is over the age of twenty-five.
E) It is not enforceable unless Tony also signs a binding contract to pass Peter even if he makes terrible grades.
Age of Majority
The legally recognized age at which an individual is considered an adult and capable of assuming legal rights and responsibilities.
Unconscionable
An action or a contract deemed to be so unfair or unjust towards a party that no reasonable or informed person would agree to it.
Business Law
A branch of law that deals with the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.
- Identify enforceability and validity of contracts based on the circumstances and parties involved.
Verified Answer
MB
Mikey BarileJul 20, 2024
Final Answer :
B
Explanation :
There are times when agreements are so one-sided,or heavy-handed against one party,that the courts will not make the harmed,innocent person fulfill his or her contractual duties.These heavily one-sided agreements are known as unconscionable agreements.The term unconscionable refers to the fact that the agreement in question is so unfair that it is void of conscience.
Learning Objectives
- Identify enforceability and validity of contracts based on the circumstances and parties involved.