01 Jul JASON AND BIGGS CAR SALE PROBLEM
Jason and Biggs Car Sale Problem
Fact Situation
Jason and Biggs start a new business which sells used cars in a lot on Westheimer in far west Houston. They do not incorporate or create any other business entity. Jason sells a car to a customer for $ 13,000.00. The customer is a 16 year old (Bob Gray) who just got his drivers license. Bob pays $ 5,000 as a down payment and orally agrees to pay $ 400 per month for the next 20 months. His father tells Jason that if his son does not make a payment that he will be responsible for any missed payments. Bob and his Dad leave the car lot with the car and get in an accident due to the fact that Bob had consumed four LSD tablets and five beers prior to going to the car lot. The car goes through a red light and crashes into a car driven by Ethel Mertz who is injured and then runs into an outdoor sign for a McDonalds restaurant and knocks the Golden arches to the ground. Ms. Mertzs injuries are compounded by the fact that she is traveling at 30 miles above the speed limit when she is hit. The car is totaled and Bobs father is killed in the accident. Bob has the car towed back to the car lot and says he wants his money back because he didnt have a valid contract with Jason and Biggs. Bobs aunt Lucille Gray is the executor of her brothers estate. She is contacted by McDonalds and asked to pay $ 25,000 for a new sign to be installed. Ms. Gray tells McDonalds attorney that she will make sure that they are paid “in due time”. She is unaware that Mr. Gray had no assets due to his gambling addiction. Ms. Gray also receives a call from the Union Casino in Las Vegas who is owed $40,000.00 from Mr. Gray. She tells them also that they will be paid and “I will make sure of it”.
Prior to Mr. Grays funeral, Ms. Gray finds a lottery ticket in her brothers coat pocket. The ticket is a winning ticket worth $ 5,000,000.00. On the basis of the information above, tell what claims parties may have against other parties. State what defenses parties may have and explain and analyze all legal issues which are presented.
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