I’m working on a business law question and need an explanation to help me study.

1.) Capacity is the mental ability to understand rights and obligations established by contract, with the ability to understand how to comply with terms of the agreement.

Given your understanding of capacity, do you believe that a 17-year old who takes $45K to attend their first year in college has capacity to enter into an educational contract. Please state your reasons for your position.

2.) Jason is excited because a developer plans a subdivision full of high-priced homes that will adjoin his property, and he believes that the subdivision will significantly increase the value of his property. Jason is so pleased that he puts in a new swimming pool to celebrate. However, the developer changes his mind and decides not to develop the subdivision. Jason is angry and asks if he can sue the developer, particularly since he can establish reliance. What would you tell Jason and why? In your answer, be sure to identify what type of beneficiary Jason represents in our example. This is instrumental in helping you determine liability. Also, discuss whether you agree with the law on this issue? Why or why not?

3.) List four situations under which contractual rights cannot be assigned. For each situation, develop a short fact pattern describing each limitation on an assignment. For this, you develop a scenario to explain when a contract would not be able to be assigned. Be creative and have fun!