Question

1. melanie becomes intoxicated at a party and then pierre persuades her to sell her car to him for $25. pierre puts the terms in writing and both of them sign the document. the next day, pierre goes to melanies house with the money and demands that she deliver the car to him. the agreement he made with her is: a. enforceable because it was in writing b. enforceable because it was signed by both parties c. unenforceable because it was made for an illegal purpose d. unenforceable because one of the parties was incompetent 14. olen buys insurance on the inventory in his warehouse, which includes a sizable quantity of watches bearing the

olex\ label, and olen pays the insurance premium. after olen reports a theft, the insurers investigation reveals that the watches it had agreed to insure were illegal counterfeits. olens contract wit the insurer is: a. enforceable because the elements of offer, acceptance, and consideration were present b. enforceable if it has been in force for more than 60 days c. unenforceable because it was for an illegal purpose

Explanation:

For question 13:

• A valid contract requires competent parties. Melanie was intoxicated (a state that can impair competence). Even if in writing and signed, an incompetent party makes the contract unenforceable.

For question 14:

• Contracts for illegal purposes (like insuring counterfeit goods which may be illegal depending on jurisdiction as counterfeits often violate intellectual - property and other laws) are unenforceable.

Answer:

1. d. unenforceable because one of the parties was incompetent
2. c. unenforceable because it was for an illegal purpose