Situation 2

Suppose that Dave was a reckless 21-year old who was, in Sam's opinion, a bit too fond of cold beer, high stakes poker, and fast cars. Sam promised to will the Thunderbird to Dave if Dave would refrain from drinking and gambling and avoid speeding tickets for the rest of Sam's life. Dave promised to refrain from drinking and gambling and to avoid speeding tickets for the rest of Sam's life.

Question 2

Select the best answer and provide legal support for your selection:

1. A bilateral contract is formed. Sam must change his will.

2. A unilateral contract is formed. Sam is under no obligation to change his will.

3. A unilateral contract is formed. Sam must change his will.

4. A bilateral contract is formed. Sam is under no obligation to change his will.

Situation 3

Suppose that, in addition to promising to refrain from drinking and gambling and to avoid speeding tickets for the rest of Sam's life, Dave actually did as he promised for the rest of Sam's life.

Question 3

True of False: Sam and David formed a contract obligating Sam to amend his will to leave the Tbird to Dave. Answer True or False and provide legal support for your conclusion.

Situation 4

Returning to the facts of Question 2, suppose that Sam promised to will the Thunderbird to Dave if Dave would promise to refrain from drinking, gambling, and speeding for the rest of Sam's life. Dave replied that he promised to refrain from drinking, gambling, and speeding for the rest of Sam's life.

Question 4

Select the best answer and provide legal support for your selection:

1. A bilateral contract is formed. Sam must change his will.

2. A unilateral contract is formed. Sam is under no obligation to change his will.

3. A unilateral contract is formed. Sam must change his will.

4. A bilateral contract is formed. Same is under no obligation to change his will.

Situation 5

When Sam's regular nurse told Sam that she required back surgery and that the doctor estimated it would take at least six months for her to recover sufficiently to resume work, Sam sought to hire Jill to be his nurse for a period of up to six months, or until Sam's regular nurse became physically able to resume her duties. In exchange for Jill's services, Sam promised to either (1) pay Jill $5,000 per month or (2) provide Jill's family with suitable rent-free housing for as long as Jill was Sam's nurse.

Question 5

Sam made alternative promises to Jill as consideration for her services. Sam was able to choose between the two alternatives, yet a valid contract was formed. Why?