Be Careful What You Sign Essay

1361 Words Apr 21st, 2014 6 Pages
1. If Letisha does not pay and Sudson sues her for breach of contract, what legal arguments could be raised in Letisha’s defense against the enforcement of the automatic renewal clause? Explain.

* Letisha could argue that the salesman who brought her the contract to sign did not make her aware of the fact that there were other clauses to the contract that had been written at the back of the page. It is only professional for someone engaging another into signing a contract to go on and make the lessee aware that they should go through the entire document before signing it and there hence tying themselves to all conditions of the agreement. It is the sole discretion of the lessee to read the whole document or not through before
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Sudson can argue that it was a legitimate company that engages its business partners in legal contracts so as to have a legal agreement on what kind of relation they have and that was what they were aiming at when writing Letisha her contract. The signed contract was just a way for Sudson and Letisha to have a legal binding as to their business dealings and engagements together and by signing it Letisha was legally bound by all the clauses in that legal documents.

3. What ethical issues are raised, if any, by Sudson’s practice of using the automatic renewal clause in their lease agreements? Explain.

* The five-year term is standard and the front page of the contract states the lease period. Letisha and the salesman for Sudson sign the front page of the contract and Letisha retains a copy of the signed agreement. The salesman did not inform Letisha of, nor did she bother to read the back of the agreement which contained additional terms, one of which is an automatic renewal clause that states: If the lessee fails to provide a 90-day written notice to terminate the contract by certified mail to the lesser, the five-year lease term period shall automatically renew for three additional five-year terms and shall only be subject to termination by the lesser. Ethical issues raised his is the conformance to contract due to negligence for not properly reviewing the contract not knowing that automatic renewal clause

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