Business law case study

He calls Tomkins to bail him out. While Tomkins is willing to help him out of jail, she gives Bauer a condition: he signs a contract agreeing that he will purchase 35% of her pizza parlor business at a cost totaling to $120,000. Considering the desperation of getting out of jail and not losing Tomkins, Bauer signs the contract. Unfortunately, Bauer declines to keep the contract terms, which results in a lawsuit. Decision: Tomkins vs. Application: The question investigates as to whether a valid contract existed between Bauer and Tomkins. It is evident that Tomkins presented an offer to Bauer of purchasing 35% of her Pizza business at 120,000, which he subsequently signed, making it valid. However, Bauer did so not because of his willingness, but rather, undue influence of the other party.