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BLAW 320 Homework 6 – Contracts
6-1. The Haunted House
Stambovsky, to his horror, discovered that the house he recently purchased was commonly
known to be possessed by poltergeists. Ackley, the seller of the house, had widely publicized
their presence in local media and on a walking tour of the Village of Nyak, New York, where the
house was located. Ackley did not disclose this characteristic of the property in the sale.
Stambovsky believed that the potential “haunting” should have been disclosed and he sought to
rescind the sale. Ackley refused and a law suit resulted.
Did the seller have a duty to disclose to the buyer the fact the house was haunted?
How should the court decide? What factors should be considered?
6-2.
How To Start A Family (Don’t try this at home)
Carolyn wanted to have a child, but did not want to get married. Joseph (a friend) agreed to have
intercourse with her, but only if she signed an agreement stating that she would not seek child
support and hold Joseph harmless for emotional and financial support of a child that might result.
They prepared and signed the agreement.
Eleven months later, Carolyn gave birth to a baby. After three years of raising the baby without
support from Joseph, Carolyn filed a suit seeking to cancel the agreement and for a declaration of
paternity and child support from Joseph.
Will the court enforce their agreement?
6-3.
Was there an enforceable contract?
Lisa Serrato appeals an order denying her claim against the Estate of Donald L. Lovekamp.
Appellant’s claim was for $60,000.00.
Lisa and Donald (the decedent) were previously married, but had been divorced for eighteen
years. The divorce decree awarded all real property to the decedent as his sole and separate
property. Several months after the divorce, Lisa and Donald began residing together again. She
alleged that they entered into an oral agreement that he would pay her $60,000.00. There was no
mention in the decree of any agreement to give Lisa $60,000.00. In a deposition she clarified
that the agreement was not entered into at the time of the divorce in 1975, but rather in July,
1981. They did not own any property jointly at the time of the “agreement”. One evening
decedent had been feeling ill and, according to Appellant, talked about selling his house and 80
acre ranch. He said he would sell for $120,000.00. Donald then gave Lisa a check for
$60,000.00 and told her it was for coming back and staying with him after they divorced.
Donald told Lisa that she could cash the check if he sold the property or if something happened
to him. The check was dated July 29, 1981. When decedent died in September, 1999, the check,
of course, was too old to cash. Lisa asserted this claim against Donald’s estate for payment of
the money.
Is the ex-wife entitled to the money from the ex-husband’s estate? Why? Why not?
6-4. The Painting Contract
Mary, a frail but mentally sound 87-year old woman, is in the front garden of her old
weatherboard home. Duncan, a big man who was tattooed and wearing leathers, parks his
motorcycle outside her garden and strikes up a conversation with Mary. He told Mary that: “I am
a licensed painter and I could paint the exterior of your house for a good price – $8000”. Mary
obviously felt intimidated by Duncan and hastily agreed. The next day Duncan arrived and over
the next two days painted her house. During this time Mary discovered from her daughter’s
inquiries that had Mary received competitive quotes for the painting work, the going rate for
painting her house was about $4000. Her daughter also discovered that Duncan’s registration as a
licensed painter had lapsed two weeks ago because he had forgotten to pay the renewal fee. The
job is now complete and Duncan has asked Mary for $8000.
Is Mary contractually obligated to pay Duncan the $8000?
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