Question

Business Law: Text and Cases 14th Edition

Chapters 11 & 18

Lucy decides that it is time that she and Schroeder marry. As an inducement, Lucy promises to buy Schroeder a new piano if he will marry her. He agrees. She also tells him that she wants a prenuptial agreement. She is very concerned that in the event the marriage does not work out, that Schroeder will be able to receive a portion of her real estate holdings. She is particularly concerned about the Apartment Complex which is worth well in excess of $1 million dollars.

The prenuptial agreement is drafted by Lucy’s attorney who has not paid his Bar dues in three years. It states that in the event of divorce, Schroeder agrees to take no part of Lucy’s real estate holdings. The agreement states the total value of the real estate is $100.000. Schroeder does not seek counsel nor does he read the agreement.   Lucy explains to her attorney that Schroeder is an “artist” and does not bother with such pedestrian pursuits. In fact, Lucy has threatened to hurt Snoopy if he does not sign the agreement.

After Lucy and Schroeder are married, Lucy refuses to purchase the piano as promised. As expected the marriage begins to dissolve and Schroeder files for divorce alleging emotional abuse. He would also like to sue to receive his promised piano and decides he wants half of all of Lucy’s assets. Lucy is angry and blames her attorney. She refuses to pay him claiming malpractice. Her attorney decides to file a counterclaim for his fees.

Lucy decides to sell some of her properties prior to the divorce. Lucy offers to sell one of her rental houses to Marcie for $500,000. Marcie agrees but adds the following to the contract.

This contract is subject to the buyer’s sale of her present home for not less than $300,000 within 30 days hereof.

Pigpen, a prospective buyer of Marcie’s home, inquires if there are any known insect infestations.   Marcie is anxious to sell and does not tell Pigpen that she has seen a number of roaches in the kitchen area. She is sure she can rid the house of the insects prior to closing and doesn’t see how a few bugs could compare to Pigpen’s poor hygiene. Pigpen agrees to her selling price of $300,000. Marcie calls Lucy with the good news.

At the final walk through of Marcie’s home, Pigpen notices roaches everywhere. He is terrified of bugs and tells Marcie the deal is off. He also demands the return of his earnest money. Marcie immediately calls Lucy and tells her she can not buy the house. Lucy demands that the sale go forward. Marcie is desperate and admits to Lucy that she has been taking large doses of prescription drugs during their negotiations. She believes this alone should defeat any lawsuit.

Lastly, after Lucy and Schroeder separate, he is forced to find an apartment and seek employment. He takes a job as a piano teacher, as he has no other marketable skills. On the day of the divorce proceedings, Schroeder has promised three students that he will provide lessons. He can not make it so he delegates the jobs to Peppermint Patty. While she is a great baseball player, she is a horrible piano player. The students complain and their mothers file suit against Schroeder. Schroeder then refuses to pay Patty. She threatens to sue.

Question: Discuss the potential remedies that each party may be entitled to receive. Discuss any defenses or argument to receipt of those remedies.

SCHROEDER V LUCY

LUCY V LAWYER

PIGPEN V MARCIE

LUCY V MARCIE

MOMS V SCHROEDER

PEPPERMINT PATTY V SCHROEDER

Answer 1

Firstly, Schoeder is entitled to receive a piano from his wife Lucy.But following their divorce, Lucy is entitled to pay certain portion of her real estate holdings of $100,000 million to Schoeder because she had already unlawfully threatened Snopy if he won't sign the document.But since the contract of selling her rental house to Marcie was subjected to Marcie's house. Therefore, since, she sold her house to Pigpen for $30000 should paid the whole amount of $500000 to Lucy. But since, Pigpen wants to breach the contract because of the concealed information from Marcie, she should return his amount too for her misconduct. Moreover, Schroeder should pay both Pappermint as well as Children's Moms for his breaching of contract.

Moreover,