Business law

Mr. Pearson was living in an assisted living facility at age 80, when he was convinced by Ms. Joelson to purchase a piece of property with $75,755 cash down and a mortgage of $279,000. West America Housing Corporation ("WAHC") would make the mortgage payments but Pearson would pay the down payment out of his savings. Joelson was part owner of WAHC. After Pearson made payments for four years, Joelson asked him to deed (transfer ownership of) the property to her brother Larry. A deed was filed with Pearson's name on it, indicating that he had received the $75,755 from Joelson as consideration. Joelson's brother Larry then deeded the property to WAHC. Pearson sued, alleging a lack of consideration. At the trial, Pearson testified that (1) he did not sign the deed, and, (2) he did not receive any money from Joelson. For her part, Joelson testified that she gave the money to Pearson in cash in a shoebox, but Joelson could not produce any evidence such as a withdrawal slip in order to support this claim. Based on this case, answer the following questions and support your answers: 1.Suppose the court decided that there was no consideration paid to Pearson. What is the legal result if consideration is not found in the contract? In other words, what happens to the contract and the property? 2.Do you think there was a lack of consideration in this case? (Just because the court said so does not mean you have to agree.) 3. Do you think there was any actionable fraud in this case? If yes, identify the fraud (who committed the fraud and the conduct that was fraudulent). If no...keep looking!    

Sample Solution