Business Law and the Legal Environment 7th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 1

Franklin J. Moneypenny hires Angela to paint his portrait. She is to be paid $50,000 if the painting is acceptable "in Franklin's sole judgment." At the big unveiling, 99 of 100 attendees think that Angela has done a masterful job. Franklin disagrees. He thinks the painting makes him look like a toad. (He does in fact look like a toad, but he does not like to contemplate this fact.) Franklin refuses to pay, and, because he signed a personal satisfaction contract, Angela gets nothing. Is this fair? Should the law allow personal satisfaction contracts?