Contract Case Study Essay

1.Adams sends adept thousand wid enamours at $5 per widget from world(prenominal) appliance to be delivered within sixty days. After the wad is consummated and subscribe, Adams requests that internationalist deliver the widgets within cardinal days rather than sixty days. International agrees. Is the contractual modification binding? Yes the contract modification is binding because twain parties concord to the modification forward the widgets were delivered. When Adams requested the new shipping manner and International agreed to the new terms. In problem 1, what effect, if all, would the chase earn drive home? International Widget In accordance with our agreement of this involvement you result deliver the maven thousand previously ordered widgets within thirty days. Thank you for your cooperation in this matter. (signed) AdamsThe letter wouldnt find whatever affect at all because the contract has already been modified by some(prenominal) parties and had been absorbed. It would just be useful if for some rea parole one of the parties didnt fulfill their part of the new contract. embrowne & Assoc., a San Francisco confederation, orders from U.S. Electronics, a New York corporation, ten thousand electronic units. chocolate-browne & Assoc.s order form provides that any(prenominal) dispute would be resolved by an arbitration panel fixed in San Francisco. U.S. Electronics executes and delivers to browne & Assoc. its ack nowadaysledgment form, which accepts the order and contains the follo lureg provision All disputes go away be resolved by the bringed estate judicatorys of New York. A dispute arises concerning the workmanship of the parts, and Browne & Assoc. wishes the case to be arbitrated in San Fran- cisco. What result The case would be arbitrated in San Fransico because the New York company agreed to their term of Browne & Assoc.s order form provides that any dispute would be resolved by an arbitration panel placed in San Fra ncisco and they didnt agree to modify the contract to change that.2. Smith, having contract to apportion to Beyer thirty tons of described fertilizer, shipped to Beyer by carrier thirty tons of fertilizer, which he declared conformed to the contract. zero(prenominal)hing was stated in the contract as to prison term of counterbalancement, but Smith demanded dedicatement as a condition of handing all over the fertilizer to Beyer. Beyer ref utilize to pay unless he were given the prospect to inspect the fertilizer. Who is jell? Explain. Smith iscorrect because Beyer omen him to deliver the thirty tons of fertilizer, and like Smith stated is conformed the contract. Edwin sells a sofa to goofball for $800. Edwin and Jack both know that the sofa is in Edwins w atomic takings 18house, located approximately ten miles from Jacks home. The contract does non pay back the place of delivery, and Jack insists that the place of delivery is either his house or Edwins store.Is Jack cor rect? In my opinion I go intot think jack is correct because it was not stated in a contract that the sofa was to be delivered to jacks home and notwithstanding with him knowing the sofa was in the w arhouse 10 miles away he still bargain ford the sofa. 6. On November 4, Kim contracted to sell to Lynn 500 sacks of dredge at $4 all(prenominal) to be delivered to Lynn by December 12. On November 27, Kim shipped the flour. By December 5, when the shipment arrived, containing only 450 sacks, the groceryplace price of flour had fallen. Lynn refused to accept delivery or to pay. Kim shipped 50 more sacks of flour, which arrived December 10. Lynn refused delivery. Kim re exchange the 500 sacks of flour for $3 per sack. What ar Kims rights against Lynn? Kim has no rights against Lynn because the order was never effectuate on her part because Lynn never accepted the shipment of the remaining 50 sacks of flour on December 10.1. Stein, a mechanic, and Beal, a living indemnification agent, entered into a written contract for the sale of Steins tractor to Beal for $6,800 cash. It was agreed that Stein would tune the motor on the tractor. Stein fulfilled this tariff and on the night of July 1 telephoned Beal that the tractor was ready to be preferenceed up upon Beals making payment. Beal responded, Ill be there in the morning with the silver. On the future(a) morning, however, Beal was approached by an insurance prospect and decided to get the tractor at a later envision. On the night of July 2, the tractor was destroyed by firing of unknown origin. Neither Stein nor Beal had any fire insurance. Who must sham the loss? Stein will have to bear the loss because make up though he fulfilled everything he was suppose to do on the contract Beal never picked up the tractor for him and still had full possession of the tractor on the night of the fire. 7. Smith was approached by a man who introduced himself as Brown of Brown & Co. Brown was not known to Smith, but Smith asked confound & Bradstreet for a credit answer for and obtained a very favor adequate report on Brown.He thereupon sell Brown some expensive gems and charge Brown & Co.Brown turned out to be a smart jewel thief, who later exchange the gems to Brown & Co. for valu able-bodied consideration. Brown & Co. was unwitting of Browns trans treat with Smith. Can Smith successfully action Brown & Co. for either the throw of the gems or the price as calculate to Brown & Co.? No he coffin nailnot sue for the gems because the items were sold to them as a third party and they had no affiliation with the person who went by Brown at all. 9. Brilles rancidered to sell his used automobile to Nevarro for $12,600 cash. Nevarro agreed to buy the car, gave Brilles a p stock for $12,600, and drove away in the car. The next day Nevarro sold the car for $13,000 to Hough, a bona fide purchaser. The $12,600 lead was returned to Brilles by the desire in which he had deposited it because of insufficient funds in Nevarros account. Brilles brings an action against Hough to recover the automobile. What idea? Brilles wouldnt be able to get his car or funds from Hough because the title was transferred over to him by Nevarro not brilles. Brilles would only be able to get his money back from Nevarro.2. The Talent connection, manufacturer of a astray advertised and expensive aromatise, sold a quantity of this product to Young, a retail druggist. Dentley and Bird visited Youngs store and Dent- ley, desiring to make a gift to Bird, purchased from Young a bottle of this perfume, asking for it by its swap name. Young wrapped up the bottle and handed it directly to Bird. The perfume contained a foreign chemical that, upon the first use of the perfume by Bird, severely burned her face and caused a permanent facial disfigurement. What atomic number 18 the rights of Bird, if any, against Dentley, Young, and the Talent Company, respectively? Bird has the right to go after both the Talent Company because they are the ones who made the perfume and are true for their products and young because they were the ones selling a product that they have not used and redeemed safe for their coustmers. 4. A route salesperson for sample milk Company delivered a one- half-gallon glass jug of milk to Allens home.The next day, when Allen grasped the milk container by its neck to take it out of his refrigerator, it shattered in his hand and caused secure injury. Allen salaried Ideal on a monthly basis for the regular delivery of milk. Ideals milk bottles each contained the legend Property of Ideal to be returned, and the route salesperson would pick up the empty bottles when he delivered milk. Can Allen recover stand-inoration fromIdeal Milk Company? Why? No Allen wouldnt be able to recover anything from the milk company because there wouldnt be large proof that the milk container was faulty, hitherto though it might have been 10. Plaintiff, bandage dining at defe ndants restaurant, ordered a cowardly potpie. While she was eating, she swallowed a sliver of chicken bone, which became lodged in her throat, causing her serious injury. Plaintiff brings a cause of action. Should she brave out? Why? Yes she would prevail because the aliment is not suppose to have bones in it, and the restaurant is loss to have to be liable for their product and pay for the plaintiffs injurys that she suffered from eating at the restaurant.1. Mae contracted to sell one thousand bushels of chaff to Lloyd at $5.00 per bushel. Just in advance Mae was to deliver the wheat, Lloyd notified her that he would not suffer or accept the wheat. Mae sold the wheat for $4.60 per bushel, the market price, and later sued Lloyd for the passing of $400. Lloyd claims he was not notified by Mae of the resale and, hence, is not liable. Is Lloyd correct? Why? Yes Lloyd is correct because he inform Mae that he didnt hope the bushels any more, which over(p) the contract. Then whe n Mae didnt deliver them she accepted that the contract was terminated. 9. Calvin purchased a put down home construction kit manufactured by Boone Homes, Inc., from an authorized Boone dealer. The sales contract stated that Boone would repair or replace defective strongs and that this was the touch on(prenominal) remedy available against Boone.The dealer assembled the house, which was defective in some(prenominal) respects. The knotholes in the logs caused the walls and ceiling to leak. A support beam was too small and so cracked, causing the floor to crack also. These defects could not be completely healed by repair. Should Calvin prevail in a lawsuit against Boone for breach of endorsement to recover damages for the loss in value? Yes Calvin would prevail in court because they stated that they would replace or repair defective material, and the material that Calvin received was defective and it cant be repaired so they have to pay for it to get it replaced or replace it th em selfs.16. Serve best contracted to sell Emes down two hundred thousand pounds of 50 percent bleed beef trimmings for $105,000. Upon a substantial fall in themarket price, Emessee refused to pay the contract price and informed Servebest that the contract was canceled. Servebest sues Emessee for breach of contract, including (a) damages for the difference between the contract price and the resale price of the trimmings, and (b) incidental damages. finality? Servebest can only recover damages for no acceptance or repudiation because the buyer breached the contract.1. Roy Rand executed and delivered the following handbill to Sue Sims Chicago, Illinois, June 1, 2011 I bid to pay to Sue Sims or bearer, on or before July 1, 2011, the sum of $7,000. This note is given in consideration of Simss transferring to the undersigned title to her 2002 Buick automobile. (signed) Roy Rand. Rand and Sims agreed to defer delivery of the car to July 1, 2011. On June 15, Sims sold and delivered the note, without endorsement, to Karl Kaye for $6,200. What rights, if any, has Kaye acquired? Kaye has acquired the full right of the money remaining on the note that Roy needs to pay for the 2002 Buick because Kaye became the bearer when he purchased the note from Slims. 7. Simon Sharpe executed and delivered to Ben Bates a negotiable promissory note payable to the order of Ben Bates for $500.Bates indorsed the note, Pay to Carl Cady upon his satisfactorily repairing the roof of my house, (signed) Ben Bates, and delivered it to Cady as a down payment on the contract price of the cover job. Cady and so indorsed the note and sold it to Timothy Tate for $450. What rights, if any, does Tate acquire in the promissory note? Tate would only acquire the promissory note if Cady fulfills his agreement with bates on repairing the roof, because if he does not finish repairing the roof he was never empower to the check in the first place. 8. Debbie Dean issued a check to Betty Brown payable to the order of Cathy Cain and Betty Brown. Betty indorsed the check Payable to Elizabeth East, (signed) Betty Brown. What rights, if any, does Elizabeth acquire in the check? Elizabeth acquires all rights to the check because Betty indorsed the check to her when she wrote on the check Payable to Elizabeth East, (signed) Betty Brown.4. Adams, who reads with difficulty, set to borrow $5,000 from toll. Bell prepared a note, which Adams read laboriously. As Adams was well-nigh to sign it, Bell diverted Adamss attention and substituted the following paper, which was monovular to the note Adams had read except that the quantitys were different On June 1, 2011, I promise to pay Ben Bell or order Twelve Thousand Dollars with intimacy from date at 8 percent. This note is secured by certificate No. 13 for 100 shares of stock of Brookside Mills, Inc. Adams did not detect the substitution, signed as maker, handed the note and stock certificate to Bell, and received from Bell $5,000. Bell indorsed and sold the paper to Fore, a holder in due course, who nonrecreational him $10,000. Fore set uped the note at maturity to Adams, who refused to pay.What are Fores rights, if any, against Adams? Fores has no right again Adams because the contract he signed was not the one they agreed upon and Bell took advantage of him because Bell knew Adams couldnt see well and switched the contract to make him pay double of the loan with 8% interest. 9. Donna gives Peter a check for $2,500 in return for a laptop computer. The check is dated December 2. Peter transfers the check for value to Howard on December 14, and Howard deposits it in his bank on December 20. In the meantime, Donna has dis- cover that the computer is not what was promised and has stopped payment on the check. If Peter and Howard disappear, may the bank recover from Donna notwithstanding her defense of failure of consideration? What will be the banks cause of action? No the bank may not recover the money because th e check has already been exchange in by Howard who has nothing to do with the transaction, if Donna had the check and dint cash it hence the bank would be able to stop the check and cancel it.3. A negotiable promissory note executed and delivered by B to C passed in due course and was indorsed in blank by C, D, E, and F. G, the present holder, strikes out Ds imprimatur. What is the indebtedness of D on her warrant? D would have no liability on the endorsement on the check given by A because his name was taken off the check, which made him not liable for the endorsement anymore. 6. Alpha orally appointed Omega as his agent to find and purchase for him a 1930 device automobile in good condition, and Omega located such a car. Its proprietor, hard roe, agreed to sell and deliver the car on January 10, 2011, for $9,000. To evidence the purchase price, Omegamailed to Roe the following instrument December 1, 2010 $9,000.00We promise to pay to the order of bearer Nine Thousand Dollar s with interest from date of this instrument on or before January 10, 2011. This note is given in consideration of John Roes transferring title to and possession of his 1930 postpone automobile. (Signed) Omega, agent Smith stole the note from Roes mailbox, indorsed Roes name on the note, and promptly discounted it with sundown rim for $8,700. not having received the note, Roe sold the car to a third party.On January 10, the bank, having discover all the facts, demanded payment of the note from Alpha and Omega. Both refused payment. (a) What are Sunset Banks rights with regard to Alpha and Omega? (b) What are Sunset Banks rights with regard to Roe and Smith? Sunset bank would have no rights against omega the bank could only reaccredit the money stolen from the stolen check and attempt to get the money back from Smith if they can find him. 10. R&A Concrete Contractors, Inc., executed a promissory note that identifies both R&A Concrete and Grover Roberts as its makers. On the rever se side of the note, the following appears X John ament Sec. & Treas. subject Bank of Georgia, the payee, now sues both R&A Concrete and ament on the note. What rights does National Bank have against R&A and Ament? National Bank has no right against R & A because they are not liable for the payments of the note they also received full rights to the promissory note when they handed it over to National Bank.9. Jason, who has extremely poor vision, went to an automate teller machine ( standard atmosphere) to withdraw $200 on February 1. Joshua saw that Jason was having extensive difficulty reading the computer screen and offered to help. Joshua obtained Jasons personalised identification number and secretly exchanged one of his old credit cards for Jasons ATM card. Between February 1 and February 15, Joshua withdrew $1,600 from Jasons account. On February 15, Jason discovered that his ATM card was missing and immediately notified his bank. The bank closed Jasons ATM account on February 16, by which time Joshua had withdrawn other $150. What is Jasons liability, if any, for the unauthorized use of his account? Jason would have full liability on the unauthorized use of his account, and would be reaccredited from the bank on both the charges made by Joshua on February 15 of 1$1,600 and the second ATMwithdrawal made on February 16 of $150. 10.On July 21, Boehmer, a customer of Birmingham effrontery, secured a loan from that bank for the principal sum of $5,500 to purchase a boat allegedly being built for him by A.C. Manufacturing Company, Inc. After Boehmer signed a promissory note, Birmingham Trust issued a cashiers check to Boehmer and A.C. Manufacturing Company as payees. The check was given to Boehmer, who accordingly forged A.C. Manufacturing Companys indorsement and deposited the check in his own account at Central Bank. Central Bank credited Boehmers account and then placed the legend P.I.G., meaning Prior Indorsements Guaranteed, on the check. Th e check was presented to and salaried by Birmingham Trust on July 22. When the loan became delinquent in abut of the following year, Birmingham Trust contacted A.C. Manufacturing Company to learn the location of the boat. They were informed that it had never been purchased, and they soon after learned that Boehmer had died on January 24 of that year. Can Birmingham Trust obtain reimbursement from Central Bank under Centrals warranty of prior indorsements? Explain. Birmingham self-assertion wouldnt be able to obtain reimbursement for the indorsement from A.C because the check was forged with their name, the bank could how ever reimburse them if it meets their bringments.11. Lile, an insurance factor who handled all insurance for pacing Co., purchased a fire policy from amends Company insuring Tempo Co.s factory against fire in the amount of $1.5 million. Before the policy was delivered to Tempo and while it was still in Liles hands, Tempo advised Lile to cancel the policy. Prio r to cancellation, however, Tempo suffered a loss. Tempo now makes a claim against Insurance Company on the policy. The bounty had been billed to Lile but was unpaid at the time of loss. In an action by Tempo Co. against Insurance Company, what judgment? The Insurance Company would win because they are not responsible for the loss that Tempo suffered since they canceled the Insurance and did not were not paying for the liability insurance. 1. In January, Roger Burke loaned his favorite nephew, nose bloodless, his valuable Picasso painting. Knowing that Jimmy would celebrate his twenty-first natal day on May 15, Burke sent a letter to Jimmy on April 14 stating Dear Jimmy,Tomorrow I leave on my one-year trip to Europe, and I want to make you a fitting birthday gift, which I do bysending you my enclosed promissory note. in any case I want you to keep the Picasso that I loaned you last January, and you may now consider it yours. Happy birthday Affectionately, /s/ Uncle Roger The neg otiable promissory note for $5,000 sent with the letter was signed by Roger Burke, payable to Jimmy White or bearer, and dated May 15. On May 21, Burke was killed in an automobile accident while motoring in France. First Bank was appointed decision maker of Burkes estate. Jimmy presented the note to the administrator and demanded payment, which was refused. Jimmy brought an action against First Bank as administrator, seeking recuperation on the note. The administrator in turn brought an action against Jimmy, seeking the return of the Picasso. (a) What decision in the action on the note? (b) What decision in the action to recover the painting? Jimmy would prevail in court because he was entitled both the painting and the money, when his uncle sent him the letter before he passed away stating that the Picasso & $5000 was a gift for his twenty-first birthday.1. Kirk put down conveyed a evoke to Adland to have and to hold for and during his life and upon his death to Rubin. Some year s thereafter, oil was discovered in the vicinity. Adland thereupon made an oil and gas lease, and the oil company set up its machinery to commence drilling operations. Rubin thereupon filed suit to enjoin the operations. presumptuous an injunction to be the proper form of remedy, what decision? Rubin wouldnt prevail in court because the oil and gas lease was made when Adland was the owner of the land and had the right to do what ever he pleased with the land until he passed away and had to pass it on to Rubin. 2. Smith possess saturnineacre in fee simple absolute. In section 3 of a decently executed will, Smith rig outd blackenacre as follows I devise my farm Blackacre to my son Darwin so long as it is used as a farm. Sections 5 and 6 of the will made gifts to persons other than Darwin.The last and residuary article of Smiths will provided All the residue of my real and personal keeping not disposed of heretofore in this will, I devise and bequeath to Stanford University. Smi th died in 2011, survived by her son Darwin. Smiths estate has been administered. Darwin has been offered $100,000 for Black acre if he can convey title to it in fee simple. No, Darwin wouldnt be able to receive the land Black acre from the will because his intention was to sell the land for $100,000 andnot use the land for farming. Which was a requirement under the will that Smith left and if he did not meet those requirements the land would be entitled to someone else stated in section 5 and 6.7. In her will, Teresa granted a life estate to Amos in certain real estate, with remainder to Brenda and Clive in common tenancy. All the residue of Teresas estate was left to Hillman College. While personnel casualty to Teresas funeral, the car in which Amos, Brenda, and Clive were driving was wrecked. Brenda was killed instantly, Clive died a few minutes later, and Amos died on his way to the hospital. Who is entitled to the real estate in read/write head? Amos, Brenda, and Clive, hei rs would be entitled to their portions of the estate that they are receiving from the will in Teresa will, and the rest of Teresas will would be given to Hillmans College as stated in the will.3. Robert and Stanley held legal title of record to adjacent tracts of land, each consisting of a number of five acres. Stanley fenced his five acres in 1986, placing his east fence xv feet onto Roberts property. Thereafter, he was in possession of this fifteen-foot strip of land and kept it fenced and cultivated continuously until he sold his tract of land to Nathan on March 1, 1991. Nathan took possession under deed from Stanley, and continued possession and kitchen-gardening of the fifteen-foot strip that was on Roberts land until May 27, 2011, when Robert, having on several occasions strenuously objected to Nathans possession, brought suit against Nathan for trespass. Explain whether Nathan has gained title by adverse possession. Nathan would not prevail in court because the land is ha ve by Robert and the contract that he had with Stanley was established for them in 1989 and not to Nathan who took over the land on March 1, 1991. 5.On January 1, 2011, Davis and Hershey owned Black acre as tenants in common. On July 1, 2011, Davis made a written contract to sell Black acre to Gregg for $25,000. Pursuant to this contract, Griggs paid Davis $25,000 on August 1, 2011, and Davis executed and delivered to Gregg a warranty deed to Black acre. On February 1, 2012, Hershey quitclaimed his interest in Black acre to Davis. Gregg brings an action against Davis for breach of warranty of title. What judgment? Davis would prevail because he sold him the entire land and not just his portion of Black acre even though he was not entitled to the landin full. Since Hershey owned a portion of the land the contract needed Hersheys speck for it to be valid.8.The city of Boston sought to reprobate land in fee simple for use in constructing an entrance to an underground terminal figure for a subway. The owners of the land contend that no more than surface and underground easements are necessary for the terminal entrance and seek to retain air rights above thirty-six feet. The city argues that any building utilizing this airspace would require structural supports that would interfere with the citys plan for the terminal. The city concedes that the properties or so the condemned property could be assembled and structures could be designed to span over the condemned property, in which case the air rights would be quite valuable. Can the city condemn the property? No the city can not condemn this property because they only have the right to the land below the surface if they want to build the entrance 36 feet in the air they would need to get the air rights from the owner.3. collins was trustee for inactive under the will of Indolents father. Indolent, a middle-age doctor, gave little concern to the management of the trust fund, contenting himself with receiving t he income paid him by the trustee. Among the assets of the trust were one thousand shares of first rudiment Corporation and one thousand shares of XYZ Corporation. About two years before the termination of the trust, Collins, at a fair price and after full explanation to Indo- lent, purchased from the trust the ABC stock. At the same time but without saying anything to Indolent, he purchased the XYZ stock at a price in excess of its then market value. At the termination of the trust, both stocks had advanced in market value well beyond the prices paid by Collins, and Indolent demanded that Collins either account for this advance in the value of both stocks or replace the stocks. What are Indolents rights? Indolent would only have rights to the XYZ stock because he purchased those stocks with out the any ones permission. In the case of the ABC stock he would not receive anything back because he sold the stock at a fair price to Collins.Upon George Welchs death, he was survived by hi s second wife, Dorothy Welch, and his daughter by his first marriage, Patricia Fisher. At the time George and Dorothy were married, George was invery poor health and he relied on Dorothy to attention for him. During the eight months George and Dorothy were married, George became isolated from his family and his health deteriorated. Prior to his death, George transferred the bulk of his assets to Dorothy. Dorothy assisted in the transfer of Georges assets and often completed checks and other papers for Georges signature. George also made a new will that named Dorothy as his sole beneficiary. Patricia was the sole beneficiary of his prior will. Through the transfers of assets and the new will, Dorothy received $570,000. Does Patricia have any legal recourse? Explain. No Patricia does not have any legal rights because everything transferred to Dorothys name was done with the consent of George, and everything in the will was left to Patricia according to Georges new will.