7) Margaret owned a Basset Hound puppy that showed great prospects of developing

Question

7) Margaret owned a Basset Hound puppy that showed great prospects of developing into a championship show dog. Bob purchased the puppy for $750 and in payment agreed to paint Margaret’s house. Shortly after the puppy was delivered to Bob, it developed a disease which killed it. Bob refused to perform the work as agreed, and Margaret sued. The most likely outcome of this litigation is best described by which one of the following statements?

a. The court would hold that the agreement was voidable since Margaret defrauded Bob.

b. The court would hold that no contract resulted because there was a lack of consideration.

c. The court would hold that no contract resulted because there was a mutual mistake concerning the health condition of the puppy.

d. The court would hold that a valid contract was formed.

Explanation / Answer

D. The court would hold that a valid contract was formed .

The consideration was valid (painting Margaret's house) and Bob got the puppy. At the time of the contract there was no disease, so the contract was legal and enforceable. Margaret didn't defraud Bob, the consideration existed and the the dog caught the disease after the dog was delivered hence it is a valid contact.

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