NO COLLABORATION PERMITTED ON THIS ASSIGNMENT. PLEASE TYPE ANDDOUBLE SPACE AND STAPLE. MUST BE HANDED IN BY YOU AT THE BEGINNINGOF CLASS ON THE DUE DATE. NO LATE PAPERS ACCEPTED.
Jack leased and operated a barbecue restaurant in Newark, NewJersey (called “Jack’s”). The premises included a bar and dancehall. Bob, a friend of Jack, decided to buy the building fromJack’s landlord Owen. In addition to buying Owen’s building, Bobwanted to purchase Jack’s business, including whatever tangibleassets, inventory or “good will” might be involved because Bobplanned to open his own restaurant on the premises and call it“Bob’s”. Bob approached Jack and offered to buy the business for$175,000 in exchange for Jack vacating the premises by December 31,2017. Separately, Bob also told Jack that he would pay him $800 perweek to be the manager of Bob’s. Jack accepted Bob’s offer to buythe business and also (separately) agreed to be the manager ofBob’s. After closing on the building (completing the purchase), inDecember 2017, Jack immediately vacated the premises and was out ofthe building by the agreed upon December 31st date. Bobbegan renovations and also began paying Jack the weekly salary of$800 for his services as manager. Bob opened the new restaurant onMarch 1, 2018. At that time, Jack asked for the $175,000 purchaseprice for the business. Bob refused to pay him and Bob fired Jackfrom his manager position. Jack commenced a legal action to collectthe $175,000 purchase price. Bob argued that because he and Jackhad not agreed to an interest rate or a due date, there was nocontract. Jack argued that the amount was interest free and due ondemand. If Bob makes a motion for summary judgment, asking thecourt to decide in his favor as a matter of law that there was noenforceable contract, will he win his motion? Explain.
