(a) Farmer owed Bobby $1,000 for a loan that was due and payable. Farmer found himself short of cash and was unable to pay. Bobby offered to accept in full discharge of the debt a certain Guernsey cow, which Farmer had on the farm. The cow was transferred to Bobby and a signed agreement was executed by both parties setting forth the deal. Two months later Bobby seeks your advice as to his rights against Farmer for the remaining $400 claiming the cow is worth only $600 on the market. Would Bobby be successful in his legal attempt to recover? Explain illustrating the legal concepts and issues involved.
(b) At the time of the above agreement to accept the cow in exchange for the debt Farmer told Bobby that it was a fertile cow and had produced several calves. Although the cow had been previously fertile, at the time of the above agreement the cow was infertile and therefore was worth only about $50. Neither party was aware of the cow's condition and both parties assumed the cow to be fertile. Advise Bobby as to his rights in light of these facts. Can he get anything more than the infertile cow from Farmer? Explain fully illustrating all possible legal concepts and issues involved.