On the way home from the hospital after having minor outpatient surgery, Magenta Katz, stopped at an upscale electronics store. She was still groggy from both the anesthesia and powerful pain medication given to her during the procedure.
While in the store, Ms. Katz negotiates with a salesperson for the purchase and sale of an in-home entertainment system. Ms. Katz mentions the surgery to the salesperson, but the salesperson does not take note of Ms. Katz's condition. The system that Ms. Katz ultimately decided upon is a top-of-the-line entertainment system with state-of-the-art viewing features and surround sound, at a cost of $18,000.00. With a personal check, Ms. Katz pays the salesperson 50% of the cost, with the remainder to be paid following installation. The transaction is reflected in appropriate contract documents and invoices and complies with all federal, state, and local regulations regarding the sale. All documentation is signed by both parties. The next day, Ms. Katz receives a call from the store to schedule the installation. Unfortunately, Ms. Katz does not really remember purchasing the entertainment system. Upon reviewing the transaction documents found on her kitchen table, Ms. Katz determines she is unable to afford such an expense and desires to cancel the contract. The contract itself has no cancellation provision. Is this contract valid, void, or voidable? Fully explain your answer, defining all legal terms.
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Textbook Readings:
- Government Regulation and the Legal Environment of Business
- Chapter 8
This section of the text will introduce students to basic contract concepts, predominantly the elements necessary for formation and remedies for breach.
- Business Law and the Legal Environment
Focusing specifically on contract performance, this reading will walk students through the levels of performance necessary to satisfy obligations under a contract.
- Washington State Hospitality Law Manual
- Part I, Chapter 2
This material addresses the application of contract law principles to the hotel-guest relationship in addition to banquet and catering agreements.