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On October 1, 2016, Long John Ranger Restaurants entered into a binding contract with AVOCO Construction Company to build a new restaurant facility. There may be some problems with enforcement of that contract as listed below.
1. Long John has been informed that the construction cannot begin because AVOCO has no bricks. In fact, a nationwide brick strike has made the acquisition of bricks very difficult. Can Long John successfully sue AVOCO?
2. Assume that Long John Ranger does build a new restaurant and sells it to Bobby Ray for $500,000.00. As part of the transaction, Long John agrees not to open another restaurant for ten years within a 50-mile radius of the one sold. Seven years later, Long John opens a restaurant 30 miles away. Can Ray enforce the agreement? Why or why not?
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