1 7-2 Project Three Contract Law Amber Meeuwen Southern New Hampshire University BUS-206-Q3490 Business Law Rosemary MacEro February 25th, 2024
2 Introduction to Contract Law The definition of a contract is "A promise or set of promises for the breach of which the law gives remedy or the performance of which the law in some wat recognizes a duty." (Kubasek et al, 2023 p.137). There are four elements to a contract. The agreement, the consideration, the contractual capacity and finally the legal object. The following report will analyze the four elements and relate them to both scenarios between The Friendly Dawg and Landlord Lou and Sunshine Yoga Studio and Landlord Lou. The following report will also determine the potential rights, claims, defenses, obligations, and remedies for both The Friendly Dawg and Landlord Lou and Sunshine Yoga and Landlord Lou. Contract between The Friendly Dawg and Landlord Lou Dave Dawgs took ownership of The Friendly Dawg pet supply store after his father died two years ago. The store's building is owned by Landlord Lou. Landlord Lou and Dave's deceased father had a signed lease that described the store as a pet supply store and the space was to be rented for $500 a month. When Dave took ownership of The Friendly Dawg, he did not sign a new lease agreement with Landlord Lou. The first element of a contract is the agreement which "consists of an offer by one party, called the offeror, to enter into a contract and an acceptance of the terms of the offer by the other party, called the offeree" (Kubasek et al, 2023 p.137). By the terms of the first element, there is not a valid contract between Dave Dawgs and Landlord Lou because no assignment was arranged. "A transfer of a tenant's entire interest in a leased property is an assignment" (Kubasek et al, 2023 p506). Lou could argue that there was never a signed lease because Dave and Lou did not formally transfer Daves father's lease. However, Dave can claim that Lou knowingly accepted the $500 rent from Dave, he waived the consent of that being a requirement. The contractual agreement is present. Lou should have
3 either transferred Dave's dad's lease properly to Dave or he should have had Dave sign a new lease. The second element of a legal contract is the consideration. The consideration is what each party benefits from the contract. In this case, it would be landlord Lou receiving $500 a month and Dave Dawgs utilizing the property for his business. The contractual element is there, Dave paid Lou $500 a month and Lou rented the space out to Dave for a pet supply store for two years, until the dispute happened. Lou saw Dave making renovations to the store to make it into a pet store where they would sell live pets. Instead of inquiring about it breaching the lease agreement, Lou said "Very exciting! Good Luck!" Lou should have stated that Dave is violating the assignment by