Business Law Assignment
Consideration and Capacity

1.     Preexisting Duty: The state of Connecticut offered a $20,000 reward to anyone giving information leading to the arrest and conviction of the individual responsible for the murder of a man killed during a robbery. Robert DePretis, a private investigator hired by an attorney who represented a codefendant in the case, obtained a written and signed confession from James Avis who admitted responsibility for the murder. DePretis delivered a copy of the confession to the state police who eventually arrested Avis. Avis was subsequently convicted of the crime. When DePretis tried to obtain the reward money, the state claimed, among other things, that DePretis was not eligible to collect the reward because as a private investigator for an attorney he had a preexisting duty to investigate and report information relating to the crime. DePretis argued that although he commenced his activity as a result of his relationship with the attorney, he had no duty to continue his investigation or turn the information over to the police. What will the court decide. Discuss.

2.     Gambling Debts: George Aubin, ex-president of a failed bank and resident of Texas where gambling debts are unenforceable, traveled to the Bahamas where gambling is legal. Aubin lost $2,000 in cash playing blackjack before the casino approved a credit line of up to $25,000 for him if he chose to take advantage of it. In less than two days, Aubin had lost the entire $25,000 issued to him in exchange for drafts on his bank in Texas. On each draft was printed: "I represent that I have received cash for the above amount and that sad amount is on deposit in said financial entity in my name, is free and clear of claim and is subject to this check is hereby assigned to payee, and I guarantee payment with exchange and costs in collecting." Aubin returned to Texas where he put stop payment orders on the drafts and refused to pay them when presented to his bank. Should a Texas court refuse to collect gambling debts a Texas resident incurred in the Bahamas. Discuss.

3.     Contracts by Minors. Johnny Hays, a 16-year-old, went to Quality Motors, Inc to purchase a car. The salesman refused to sell the car unless the purchase was made by an adult. Johnny returned with a friend, a young man aged 23. The salesman then accepted Johnny's cashier's check and a bill of sale was made out to the older friend. The salesman drove the two boys into town so a notary could transfer the title from the young man to Johnny. After this was done, the salesman delivered the car to Johnny. Johnny's father has attempted to return the car to Quality Motors for a full refund. Quality Motors refused. To complicate matters, Johnny found the keys and wrecked the car. Can Johnny disaffirm this contract although it was nominally made by an adult. Explain.

4.     Competency: Frank Feiden was diagnosed with Alzheimer's disease in 1982. Four years later, during a hospital stay for surgery, Frank conveyed his farm to his sons, Harry and Norman. Harry was deed a larger share of the property than Norman. Norman now wants a court to set aside the deed, alleging that his father was not competent when he signed them. A physician, a psychiatrist and an attorney all state that Frank had been unable to handle his financial affairs or understand the legal consequences of his actions for several years prior to these transactions. However, another psychiatrist states that Frank had "lucid intervals," and the attorney who prepared the deeds states that Frank understood what he was signing, and that he also was aware that he was deeding more property to Harry than Norman. How should this case be decided. Discuss fully.

Assignments must be typed.