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Christina Scott was responsible for leases and purchases of property for Bayview. Bayview was interested in building a coffee shop on a tract of land close to Clemson University in South Carolina. Scott met with Moe Smith about purchasing the land. Scott judged Smith to be about 85 years old. During the meeting, Scott noticed several brochures about assisted living facilities, as well as several prescription bottles. After discussing the good old days for several hours, Scott and Smith agreed on the sale of the land for $45,000. Since Scott brought a copy of a contract with her, she helped Smith complete the paperwork and both parties signed. Unbeknownst to either party, the purchase price was written as $5,000. Three days before the closing, Scott called Smith to remind him of the location of their meeting to sign the remaining documents. Confused, Smith said he didn’t know anything about selling that land and he had no intention of selling his land to some dumb blonde who tried to cheat him.
• What are the basic requirements for contract formation?
• What defects in the contract formation process may have occurred?
• Does Scott, on behalf of Bayview, have a valid contract with Smith?
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