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BUS 681 – Law and Business
Bobby L. Hazelton, Esq.
Second Assignment
True/False Questions
1) A contract may be both valid and unenforceable.
2) A court of law never implies terms that the parties have imperfectly covered.
3) Anyone who knows of an offer may accept it.
4) Fraudulently inducing a person to enter into a contract is prohibited by the
Statute of Frauds.
Short Answer
1.Explain the difference between a void contract and unenforceable contract.
2.What are the essential terms of a valid offer?
3.How can an offer be terminated?
4.What is meant by the “sufficiency” of the consideration?
Short Drafting Exercise
Susan Jones, the owner of the local nightclub, WorDance Spot LLC (“WorDance”), has
approached you, her new MBA-employee in the contracting department, for help with a current
problem. Last year on September 1, Susan signed a local high school student James Smith to be
the DJ for a teen night at her club. The written agreement signed by both parties called for
James to receive two hundred dollars ($200) for every night he performed, and required James to
exclusively perform at WorDance. The original oral agreement between the parties had a two
year term. James has become quite popular and attendance at the club has increased dramatically
during the nights he performs. James is considering whether to quit working to focus on his
studies, continue at WorDance, or pursue a recording career. James has told Susan he will make
a final decision on March 1, the day he turns 18. Susan wants to have all documentation ready,
and is prepared to pay James a five hundred dollar ($500) signing bonus if he continues
performing at WorDance. Discuss any problems with the current agreement between James and
Susan. Please draft a short document that will satisfy Susan’s need to retain James at
WorDance.
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