Contract: Managing Legal Relationships, Law Homework Help

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Bill owes Bob $500 for a gambling debt, which is not enforceable under the laws of the state. Bill and Bob have signed an agreement that is an attempt to enforce that debt anyway. He now wants to get out of it.

Bob sold a wrecked car to Bill that does not run, for $2,500. The car sits on a lot owned by Bob’s brother and has not been moved. The agreement to sell the car, including the price, time of payment, and a description of the car is in writing. Bill considers it a “sham transaction” which is just a way of getting him to pay the gambling debt. The parties made a verbal agreement that once Bill pays $500, the rest will be forgiven and the car title will never be transferred.

Does the form of making it into a car sale make an otherwise unenforceable debt, enforceable?

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