In the book The Hobbit and in the movie, The Hobbit: An Unexpected Journey title character Bilbo Baggins is part of an epic quest to reclaim the lost Dwarf Kingdom of Erebor. Approached by the wizard Gandalf the Grey, Bilbo joined a company of thirteen dwarves led by the legendary warrior Thorin Oakenshield.
But not before he signed a contract with the dwarves. Bilbos Deed of Contract is a paper given to him by the dwarves. specifying his terms of involvement with the dwarves, including travel expenses, and Bilbos share of the treasure. Also known as The Conditions of Engagement, the contract is rather brief:
For your hospitality our sincerest thanks, and for your offer of professional assistance our grateful acceptance. Terms: cash on delivery, up to and not exceeding one fourteenth of total profits (if any); all travelling expenses guaranteed in any event; funeral expenses to be defrayed by us or our representatives, if occasion arises and the matter is not otherwise arranged for.
Your mission, if you accept it, is to analyze the contract between Bilbo and the dwarves under the U.S. (not Middle Earth) law of contract formation. Does it contain the four elements? Are there any defenses to enforcement?
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