CONTRACTS I – FALL 2026 MIDTERM LA 521 Cоntrаcts 1 Fаll 2026 Prоf. Steven O’Herin Midterm Exаminatiоn Question 1: Pascal, a math prodigy, believed that he had discovered an actual get-rich-quick scheme by outsmarting the lottery. Pascal determined that a particular jackpot lottery contest had favorable odds during a certain month, such that the expected value of each ticket at $7 (calculated based on the values of the prizes and the likelihood of winning on each ticket) was more than the cost of the $5 ticket. If he bought enough tickets, Pascal figured he would statistically come out ahead. Pascal decided to take advantage of his calculations and buy lottery tickets in bulk. Pascal, who did not want to spend the time individually buying hundreds of tickets, entered into a valid written contract with Dorothy. The contract called for Pascal to give Dorothy $550 on Monday each week for four weeks. Dorothy would then buy 100 lottery tickets for Pascal on Tuesday of each week; Dorothy would use $500 that Pascal provided to buy the tickets at $5 per ticket. Dorothy would get to keep $50 each week in exchange for her time buying all the tickets. Pascal and Dorothy agreed that Dorothy would not buy any lottery tickets for herself during the four weeks, and they agreed that if Dorothy bought herself even a single lottery ticket during this time, she would owe Pascal $1,000,000 – the amount of the biggest jackpot. For the first week, Pascal gave Dorothy $550, and Dorothy bought 100 tickets for Pascal. None of them were winners. On the second Monday, Pascal again gave Dorothy $550. That Tuesday, however, Dorothy decided to buy 100 lottery tickets for herself instead of Pascal. Dorothy purchased 100 tickets for scratchers, a different lottery contest than the jackpot lottery Pascal was interested in. Pascal was furious that Dorothy had not fulfilled her end of the bargain. Even worse, on Wednesday Pascal discovered that one of the scratchers tickets Dorothy had purchased that week was a winner, for a prize of $100,000! The remaining tickets were all losers. On Thursday of that week, Pascal approached his lawyer and asked what remedies were available to him in a lawsuit if the court found that Dorothy breached the contract. Discuss Pascal’s potential remedies for breach of contract, including the likelihood of obtaining each remedy and any limitations. Do not discuss any issues involving tort or criminal law.