Fact Pattern 10-1
Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie.
Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased.
Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit.
Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney.
-Refer to Fact Pattern 10-1. Suppose the Mississippi legislature passes a law, one day after Lulene and Ellen make their contract, that the sale of lemon pies is prohibited in the state because lemons have been found to cause cancer. This statute makes the contract:
A) valid
B) unenforceable
C) voidable
D) unilateral
E) legal

Question

Quizplus · Accepted Answer

The contract is now unenforceable due to the change in law. The statute makes it illegal to sell lemon pies, so the contract cannot be performed as originally agreed upon.

Fact Pattern 10-1 Lulene Makes the Best Lemon Meringue Pies in Mississippi. So