Simon has done so well in the food truck business that he at

Simon has done so well in the food truck business that he attracted the attention of numerous investors. However, Simon never really considered partnering with other vendors until he received an inquiry from the Street Foods R Us franchise.

Orlando, the owner of the Street Foods R Us franchise, was interested in the possibility of setting up business in a food truck park with Simon as a part of a franchise agreement. Orlando would be the franchisor and Simon would be the franchisee. Orlando would supply Simon with the use of his nationally known trademarks as well has his expertise. Orlando wanted to be certain that Simon was serious, so he asked Simon to secure a land lease and $20,000 for start-up costs. The $20,000 was to be paid to Orlando.

Simon withdrew $10,000 of his savings to secure a multi-year land lease and took out a $20,000 mortgage on his home to cover the franchise start-up costs. When Orlando mentioned that they needed lighting for nighttime vending, Simon contracted with an electrician service to install commercial-grade outdoor lighting fixtures throughout the property. The electrician’s bill totaled $8,000.

Despite numerous phone calls, Simon did not hear from Orlando again until a month later, when Orlando advised Simon that the leased land was not to his liking and that the franchise start-up costs would be $45,000 instead of $20,000.

Frustrated by Orlando’s demands, Simon protested and asked Orlando to reconsider the deal. Orlando refused and told Simon, “Take it or leave it.”
To recoup his losses, Simon filed a lawsuit against Orlando based on breach of contract and undue influence. Orlando responded by asking the court to dismiss the case because no formal franchise agreement was ever signed between the parties and because he did not unduly influence Simon’s business decisions in the matter.

1. Describe each element necessary to form a contract. Determine whether each element is present in the Simon’s Food Truck (Wheelin’ and Dealin’) scenario.

a. Offer

b. Acceptance

c. Capacity

d. Legality

e. Assent

f. Consideration and Promissory Estoppel

Solution

Offer :- To enter into a contract with any party we have to make a offer first to the party which has a right to accept of reject that proposal. The person who can make or present a offer is caller offeror and the person to whom the offer is present is called offeree. Here in this case Orlando was interested to setup a business with Simon so he gives him a offer helping him in his work.

Acceptance :- When a party Said yes for the offer that is made to him that shows that the person is giving him acceptance for the offer made. Here in this case various conditions are proposed for doing the work and that conditions are fulfilled by the Simon that shows the acceptance of the offer.

Capacity :- Capacity means that the person is able to fulfill the conditions Capacity means the legal competancy of each party to enter into contract. Capacity shows the ability of the parties.Here in this case the party can deposit the amount of $20000 and the Orlando is helping Simon in business.

Legality :- Legality shows that the contact has been done for the legal work It means the work for which the contract is made is not illegal. It can fulfill proper compliace of laws. Here in the given case the contract is made for the setup of business which is a legal task means there is no problem in it . No Government intervention in the work.

Assent :- Assent means act of agreeing over something especially in return of proper consideration And here in the given case all the consideration are properly provided That is of helping him in business and made a payment of $20000 to the Orlando.

Consideration and promissory Estoppel :- Promissory Estoppel means that the contract is enforceble by law even if made without consideration . It is a legal principle And Consideration means simply something in return. Here we see in the case the contract is of doing business jointly using trademark of Orlando. And also there is proper consideration of $20000