Third Class
Second Semester
Contracts
Goals:
1) Understand some basic contract law theory
2) Appreciate that there are different ways to interpret a contract
3) Distinguish between what's legal and what's right
4) Learn to spot good arguments for either side
I. What Is A Contract?
A. A "bargained for exchange" between two parties. Write this definition and discuss what
that means.
B. Read "The Case of the Crab-Grass Lawn" (attached)
1. Was there a contract? -- Yes
a. Two parties, bargained for exchange.
b. Does a contract have to be written?- No can have oral contracts. If they are not
performed how do you prove?
c. Does it matter that Yoon Hee is a minor?- Yes- Minors can enter into contracts
but they are not always enforceable.
2. Does Mr. Johnson owe Yoon Hee money?
3. Would your answer change if Yoon Hee had become suddenly very sick and unable
to finish the lawn?
4. Does Yoon Hee owe Mr. Johnson money? What is the fair result?
II. How to Write a Contract.
A. What would you want to write a contract for?
1. Sale of you little brother?- Can't would be illegal and contracts that are for illegal acts
are unenforceable.
2. Contract to buy a dog?
B. What types of things would you want in your contract to buy a dog?
1. Type of dog
2. How much
3. Date when you will get the dog.
4. The parties involved.
3. Signature of the parties
C. Write a Contract to Clean Your Room-
1. The parties
2. How often
3. What has to be done- Can everything be stuffed in the closet? Do I have to make the
bed?
4. How much?
5. For how long?- 1 week? 1 year? Forever?
Crab Grass Contract
Narrator: Yoon-Hee is looking for a way to get more money to save up to buy magic cards and
Babysitter Club books. She agrees with Mr. Johnson, her next door neighbor, to mow
his lawn on Saturday.
Mr. Johnson: "The lawn must be done before the big barbecue I am planning on Sunday."
Yoon Hee: "Sure Thing Mr. Johnson."
Mr. Johnson: "The lawn is quite large. Can I count on you?"
Yoon Hee: "You bet!"
Mr. Johnson: "Well, then, Yoon Hee, I agree to pay you $20.00. I don't think it will take you
more than two hours."
Narrator: On Saturday, Yoon Hee begins mowing the lawn which has a bed of roses in the
middle. After three hours work Yoon Hee gets most of the lawn done except for a
corner measuring about one tenth of the lawn. Yoon Hee's Mom calls her in and
Yoon Hee forgets to finish the last bit of lawn. The next morning, Mr. Johnson calls
Yoon Hee, very angry.
Mr. Johnson: "You broke our contract.”
Yoon Hee: "I'm so sorry Mr. Johnson, I just forgot. Even though I worked much longer than you
estimated, you don't have to pay me the full amount. Just pay me for the 9/10 of the
lawn I mowed.”
Mr. Johnson: "I paid you for a fully mowed lawn. I don't have a fully mowed lawn. You get
nothing!"
Yoon Hee: "After all that work?! That's not fair!"
Mr. Johnson: "Are you kidding? You mowed over one of my rose bushes. You owe me $35.00.”
