Several students at Jefferson Community College became close friends after forming a study group in their favorite business law class during their final semester at college. They all intend to become successful entrepreneurs after graduation. They share similar professional interests and want to open a service-oriented business. Unfortunately, they all have limited financial resources and they are in dire need of revenue to rent office space and buy equipment and supplies. While driving home one day, one of the students discovered a unique real estate opportunity that just went on the rental market at a very visible and desirable location in Watertown, New York. The office space was perfect for their needs, had ample parking for customers, and was priced lower than any other office space they had seen. After conferring with classmates, the student immediately contacted the landlord and arranged an in-person meeting with the landlord. When they met, the student smelled alcohol on the landlord’s breath, but the landlord had driven to the meeting, acted “normal”, and prepared and signed the written lease with no observed difficulty. All the students were very pleased with the office space and the terms of the rental agreement. Two days after the lease was signed, the landlord contacted the student and said he was rescinding the lease because he was drunk at the time he signed the lease and he would never have leased the space for the price they had agreed to if he had not been drunk.
QUESTION 1: Explain the pros and cons of all the various types of business organizations the students can form. Of the business organizations you explained, which one do you recommend for these entrepreneurs and why?
QUESTION 2: Does the student have a valid contract with the landlord and explain why or why not? If the student has a valid contract, explain the types of legal remedies available to the student. Of the remedies you explained, which one do you recommend to this student and why?
QUESTION 3: You conclude that the student has an action against the landlord, but the student has never sued anyone before. The student does not know what paperwork the student needs, where to file the lawsuit, or what happens after the document is filed. Explain the type and content of paperwork the student needs to file, where the student should go to file the action, and an overview of the legal process that follows after the action is filed.