Determining a Valid Contract
You are currently an intern working for the largest law firm
in Alabama. Your mentor and senior attorney introduces you to a new client,
Dick Jefferson, the owner of House Doctor, Inc. Mr. Jefferson relates the
following story during the meeting.
Jefferson met with Yolanda Jackson, 85 years old, and her
son, Melvin, about adding a room to Ms Jackson’s home and providing a
home-maintenance plan. Melvin handles his mother’s financial matters, but he
had to leave for work ten minutes after Jefferson arrived to talk with them.
During the meeting, Mr. Jefferson noticed several brochures
from the American Schizophrenia Society on Ms. Jackson’s kitchen table. In
addition, she asked Mr. Jefferson to get her a glass of water so that she could
take her medication. Mr. Jefferson opened the prescription bottle containing
the medication Abilify for Ms. Jackson, because she said she could not figure
out the childproof cap. Jefferson also noticed a bottle sitting on the window
ledge labeled Haldol.
Mr. Jefferson discussed a two-year home-maintenance package,
which included the room addition and any repairs the house needed during that
time. The cost of the room addition and two-year maintenance plan was
$50,000.00. Ms. Jackson stated that the arrangement seemed fine and asked when
Mr. Jefferson could start work on the room. Mr. Jefferson indicated that he
could start work on the room the following Monday.
Mr. Jefferson showed up at Ms. Jackson’s house the next
Monday at 7:00 a.m. and started work on the new room. Ms. Jackson had been away
for the weekend and did not return home until 4:00 p.m. that afternoon. At that
time, Ms. Jackson told Mr. Jefferson that she no longer wanted him to provide
maintenance on her home or the new room, because she had found a cheaper
company. Mr. Jefferson packed up his materials and his crew left Ms. Jackson’s
home. Mr. Jefferson has come to your firm to inquire about enforcing his
contract against Ms. Jackson.
Prepare an interoffice memorandum, to the firm’s senior
attorney that addresses the following issues:
Does a valid contract exist between Ms. Jackson and Mr.
Jefferson? Please discuss the basic requirements for contract formation.
What defects in the contract formation process may have
occurred? Consider arguments for each party.
Consider all the legal concepts addressed in this course to
date, defining your terms as you apply them to the relevant facts.
Finally, also provide practical solutions that may help Mr.
Jefferson avoid the potential defects in the contract formation process that he
now faces.
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