Discussion

Contract Validity

Requirements: No citation (Using your own words) , 1 paragraphs

A man named Bob Smith believes that he is Santa Claus (who delivers presents to all the children around the world on ChristmasEve). In fact, he is not Santa, but he has believed this for many years. He signs his name “Santa.” He signs any contracts as “Santa,” and he refers to his wife as “Mrs. Claus” even though her name is actually Betty Smith. She puts up with it, because hereally does believe he is Santa, and because she loves him and because his wages from his job at Hasbro toys pays the bills.

One day he enters a contract with your company to hire you to build him a gigantic workshop in his backyard so he can build histoys and stable his “eight tiny reindeer.” In return he will pay you $120,000 for the construction. When his wife learns of this deal, she tries to reject it because it is voidable due to his lack of contractual capacity.

Was this contract voidable, or valid and enforceable? Fully explain your answer.

Answer preview

Betty Smith was within her right to reject that contract because it was not valid. This is because Santa Claus isn’t the same person as Bob Smith, therefore, the contract was entered into by a different individual altogether. In this case, the law is fully in favor of Mrs. Smith because one must use a name that can be identified by the authorities…

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