Unit 6 Assignment, I.M. Bibe Legal Issue and Statement of Facts

Unit 6 Assignment

PA 205-01

To: Attorney Berube

From: J. F.

Re: Memo – Intoxication while making contract – Client: I.M. Bibe, Client # 6898, File # 26179

Date: November 10, 2010

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Statement of Facts:

Our client, Mr. I.M. Bibe, is a marketing executive who works for a computer chip company. Mr. Bibe began employment with his current firm shortly after obtaining his master’s degree, and moved up over the last several years to various marketing positions.

One Friday, Mr. Bibe and three co-workers went out for lunch, about 12:30 p.m., to celebrate the fact that they had reached their sales and marketing goals for last year, which entitled each of them to a $150,000 bonus. It was the third year in a row that Mr. Bibe and his group had reached their goals. Each of the men ordered a large salad to eat. Mr. Bibe and two of the co-workers were drinking wine during lunch. A third co-worker, Owen Lotts, drank only water. Lotts was aware that Mr. Bibe had been looking for a small business to purchase, and while Mr. Bibe and the two co-workers were drinking their second bottle of wine, Lotts told Mr. Bibe about a small coffee shop that he wanted to sell. Lotts told Mr. Bibe that he could use the bonus money from the past two years’ bonuses to purchase the coffee shop. Lotts said that the coffee shop was a profitable business, and it was worth well over the $300,000 asking price. Mr. Bibe laughed and told Lotts he was not interested.

Lotts ordered a third bottle of wine for the group. While they were drinking it, Lotts went to his car and returned with some books that he claimed were the coffee shop’s business records. Lotts continued to tell Mr. Bibe what a great deal the coffee shop was, that it was consistently profitable showing $30,000 per year profit on the shop. He again told Mr. Bibe that he should buy it. Mr. Bibe finally told Lotts to put the...