Tony Drexel, a 16 year old of average mental ability, enters into a contract with Nick Biddle, owner of a blacksmith shop in Bull Chip, Texasa town of 1,800 in the barren Texas panhandle. Tony is to receive training and room and board in exchange for helpiny Nick shoe horses. The contract is on a pre-printed form drawn up entirely by Nick and contains six pages of numbered paragraphs some of which are shown below: I, Tony Drexel, as a condition for any training and employment received and for the valuable sum of 51.00, agree to the following conditions of emp 1oyment:
1. I shall pay to Nick Biddle the sum of $400.00 per month to cover ~ room and board expenses.
2. I agree that r shall not establish any business that involves shoeing horses within 40 miles from N1ck Biddle's shop for a period of one year after leavinq the employ of Nick Biddle. At the end of the contract is paragraph #40: 40. This written agreement represents the entire contract between the parties. Tony spends i1j}proxillltltely three minuLes reading the contract ilnd signs H. Al though the contract was drafted by Nick in Texas, it was signed by both parties in an Oklahoma hospital where Nick was recovering from an . inj u'rysuf·feredwhl-le~,a,tt-€mpt~lA9tG,s'hoe.arnul-e-he mistakenly thought weS a horse. Tony works for Nick for one year without makinq any payments for room and board, and decides to open his own blacksmith shop in Metropolis, Texas, a town of 3,500 a distance from Bull Chip as shown on the attached map. Metropolis is 35 miles on a direct line from Bull Chip, but can only be travelled by car or horseback on back roads at a minimum distance of 45 mil es. Please answer all of the following questions in detail. Assume that the contract is divisible, and that the age of majority in Texas and Ok 1ahoma is 18
Assume that the common law of Texas allows for a minor's avoidance of all contracts but necessaries and that the law of Oklahoma is unique in the fact that it allows a minor to avoid ~ contracts without making restitution. Assume that Nick Biddle was to make a 20r.; profit on Tony's room and board. In a suit ina Texas court by Nick to recover the payment of $4,800.00 ($400/month x 12 months-in case you couldn't figure it out), Tony seeks to defend by claiming the contract is totally voidable as per Oklahoma law. Is his defense valid? If not, what can Nick recover? Explain.
Assume that Tony received no salary or compensation for the year of employment. 2. Nick seeks an injunction to prevent Tony from opening a blacksmith shop in Metropolis on the basis of paragraph 2 of the contract. Oecide this issue in favor of either party without regard to the issue of Tony's minority, and explain your answer.
3. For the sake of this question only, assume that the following clause appears in the contract: 39. Sould Tony Drexel breach any provision of this contract, he shall be liable to Nick Biddle for the sum of ~15,OOO.OO as liquidated damages. Nick alleges that Tony owes him $15,000.00 as per paragraph 39 of the contract. Without regard to the fac t that Tony is a uif nor , and regarding this legal issue only, should Nick be entitled to the $15,00.00? Exp la in , As sume that this is the gnly ranee)" souqht by Nick; ,ie., Nm-rs noT-seenn9 an injunction or the $4,800.