Project 7-2
Renae Davis-Plummer
The Friendly Dawg and Sunshine Yoga
To establish a valid contract, there must be four necessary elements present. These four
elements consist of an agreement, the consideration, contractual capacity, and a legal object
(McGraw, 2019. Pg. 324). The agreement in this scenario is Dave would assume the
responsibilities of The Friendly Dawg's lease due to his father's passing. An agreement would
need to be established for landlord Lou and Dave to have a valid contract. Dave would have
agreed to the existing contract and assumed the position as Lou's tenant. Dave will be subjected
to the same agreements his late father had. The second element of a valid contract is the
consideration. The consideration between landlord Lou and Dave is Dave will pay $500 a month
for rent and landlord Lou will fix the air-conditioning system or any other issue that occurs. The
third element of a valid contract is contractual capacity. Capacity is the legal ability to enter into
a binding agreement (McGraw, 2019. Pg. 326). For example, both Dave and landlord Lou were
of sound mind and over the age of 18 when they entered an agreement. Neither party was
intoxicated or incapable of comprehending the contract which would make their contract
voidable. Our fourth element of a legal contract is a legal object. This means that, for landlords
Lou's contract to be enforceable, his contract with Dave cannot be illegal or against public policy
(McGraw, 2019.Pg. 326).
The Friendly Dawg and landlord Lou has a valid contract that was transferred to Dave
when he took over the business due to his father's passing. The contract elements that exist
between the two are agreement, which is Dave agreeing to take over his father's lease,
consideration, which is the payment of rent and in return all issues will be fixed, contractual
capacity, which is both parties being of sound mind and of legal age when they entered a contract
and last, a legal object, which is both parties entered a legal contract that is not against public
policies.
As the tenant, Dave has duties and corresponding rights to abide by. He has the right to retain
possession of the property, but he is limited to how he can use the property. He has the right to
quiet enjoyment of the property which is a promise made by the landlord in a lease. Dave can
renovate and expand his inventory because there was no statement in the lease stating that he
could not do so. Dave can also refuse any claims made against him by Sunshine Yoga because he
has a valid lease and pays more to his landlord in rent. Dave can stop his payments of rent due to
landlord Lou not fulfilling his obligations but only if he notifies him of the issue and nothing is
done.
For Dave's claims: Dave can claim that he has a valid lease that did not restrict him from
renovating the premises and adding live animals. He can