Contract Case Study Essay

1.Adams secerns one railway yard widgets at $5 per widget from International Widget to be delivered within sixty long time. After the reduce is consummated and gestural, Adams requests that International deliver the widgets within thirty days rather than sixty days. International agrees. Is the contractual modification binding? Yes the contract modification is binding because deuce parties agreed to the modification before the widgets were delivered. When Adams requested the untried shipping method and International agreed to the revolutionary shapes. In problem 1, what effect, if whatever, would the following letter salaryl? International Widget In accordance with our agreement of this meet you allow deliver the one thousand previously ordered widgets within thirty days. give thanks you for your cooperation in this matter. (signed) AdamsThe letter wouldnt brook any affect at all because the contract has already been modified by both parties and had been accepted. It w ould just be useful if for some rea intelligence one of the parties didnt fulfill their part of the new contract. cooke & Assoc., a San Francisco companionship, orders from U.S. Electronics, a New York company, decennium thousand electronic units. Browne & Assoc.s order form provides that any dispute would be resolved by an arbitrament panel located in San Francisco. U.S. Electronics executes and delivers to Browne & Assoc. its acknowledgment form, which accepts the order and contains the following provision All disputes testament be resolved by the State approachs of New York. A dispute arises concerning the workmanship of the parts, and Browne & Assoc. wishes the national 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 arbitrement panel located in San Francisco and they didnt agree to modify the cont ract to change that.2. smith, having contracted to swap to Beyer thirty tons of described fertilizer, shipped to Beyer by autorier thirty tons of fertilizer, which he stated conformed to the contract. vigour was stated in the contract as to time of wages, but smith demanded payment as a condition of handing over the fertilizer to Beyer. Beyer refused to pay unless he were granted the opportunity to inspect the fertilizer. Who is correct? Explain. Smith iscorrect because Beyer contracted him to deliver the thirty tons of fertilizer, and like Smith stated is conformed the contract. Edwin conveys a couch to Jack for $800. Edwin and Jack both know that the sofa is in Edwins w arhouse, located approximately ten miles from Jacks home. The contract does not specify the place of delivery, and Jack insists that the place of delivery is both his house or Edwins stack away.Is Jack correct? In my opinion I dont think jack is correct because it was not stated in a contract that the sofa was to be delivered to jacks home and even with him knowing the sofa was in the wargonhouse 10 miles away he still purchased the sofa. 6. On November 4, Kim contracted to sell to Lynn 500 sacks of dredge at $4 each to be delivered to Lynn by declination 12. On November 27, Kim shipped the flour. By December 5, when the expedition arrived, containing only 450 sacks, the market price of flour had line of descenten. Lynn refused to accept delivery or to pay. Kim shipped 50 more sacks of flour, which arrived December 10. Lynn refused delivery. Kim re change the 500 sacks of flour for $3 per sack. What are Kims rights against Lynn? Kim has no rights against Lynn because the order was never fulfilled on her part because Lynn never accepted the shipment of the remaining 50 sacks of flour on December 10.1. beer mug, a mechanic, and Beal, a life indemnity performer, entered into a written contract for the sale of Steins tractor to Beal for $6,800 bullion. It was agreed that Stein would tune the motor on the tractor. Stein fulfilled this obligation and on the shadow of July 1 telephoned Beal that the tractor was ready to be picked up upon Beals making payment. Beal responded, Ill be there in the morning with the money. On the next morning, however, Beal was approached by an insurance prospect and decided to get the tractor at a later date. On the night of July 2, the tractor was destroyed by fire of unknow origin. Neither Stein nor Beal had any fire insurance. Who must bear the loss? Stein will commit to bear the loss because even though he fulfilled everything he was depend to do on the contract Beal never picked up the tractor for him and still had full self-denial 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 Dun & Bradstreet for a credit written report and obtained a very favor qualified report on Brown.He thereupon interchange B rown some dearly-won gems and billed Brown & Co.Brown move away to be a clever jewel thief, who later s obsolescent the gems to Brown & Co. for valuable consideration. Brown & Co. was unaware of Browns transaction with Smith. behind Smith successfully sue Brown & Co. for either the compensable back of the gems or the price as billed to Brown & Co.? No he cannot 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 offered to sell his used automobile to Nevarro for $12,600 cash. Nevarro agreed to buy the car, gave Brilles a baulk 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 check was returned to Brilles by the bank in which he had deposited it because of insufficient funds in Nevarros account. Brilles brings an action against Hough to see the automobile. What judgment? Brilles wouldnt be able to get his car or money 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 participation, manufacturer of a widely advertised and expensive perfume, sold a quantity of this product to raw, a retail druggist. Dentley and Bird visited Youngs store and Dent- ley, desiring to irritate a gift to Bird, purchased from Young a bottle of this perfume, asking for it by its trade name. Young wrapped up the bottle and handed it directly to Bird. The perfume contained a foreign chemical that, upon the world-class use of the perfume by Bird, severely burned her face and caused a permanent facial disfigurement. What are the rights of Bird, if any, against Dentley, Young, and the Talent attach to, respectively? Bird has the right to go after both the Talent high society because they are the ones who do the perfume and are reliable for their products and young because they were the ones sell ing a product that they cast off not used and redeemed safe for their coustmers. 4. A route salesperson for saint 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 serious injury. Allen paying(a) Ideal on a monthly cornerstone 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 damage fromIdeal Milk Company? wherefore? No Allen wouldnt be able to recover anything from the milk company because there wouldnt be enough proof that the milk container was faulty, even though it might have been 10. Plaintiff, part dining at defendants restaurant, ordered a chicken 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 prevail? Why? Yes she would prevail because the food is not suppose to have bones in it, and the restaurant is going 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 wheat to Lloyd at $5.00 per bushel. Just before Mae was to deliver the wheat, Lloyd notified her that he would not birth or accept the wheat. Mae sold the wheat for $4.60 per bushel, the market price, and later sued Lloyd for the balance 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 want the bushels any more, which terminated the contract. Then when Mae didnt deliver them she accepted that the contract was terminated. 9. Calvin purchased a log home structure kit manufactured by Boone Homes, Inc., fr om an authorized Boone dealer. The sales contract stated that Boone would rep airwave or change defective materials and that this was the exclusive remedy available against Boone.The dealer assembled the house, which was defective in several respects. The knotholes in the logs caused the walls and hood to leak. A support beam was too small and therefore cracked, causing the floor to crack also. These defects could not be completely cured by repair. Should Calvin prevail in a lawsuit against Boone for breach of rip-purchase warrant to recover damages for the loss in harbor? Yes Calvin would prevail in tap because they stated that they would convert or repair defective material, and the material that Calvin fatherd was defective and it cant be repaired so they have to pay for it to get it replaced or replace it them selfs.16. Serve best contracted to sell Emessee two hundred thousand pounds of 50 percent lean beef trimmings for $105,000. Upon a substantial fall in themarket pr ice, 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. Decision? Servebest can only recover damages for no acceptance or repudiation because the buyer breached the contract.1. Roy Rand penalize and delivered the following bank stigmatise to Sue Sims Chicago, Illinois, June 1, 2011 I promise 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 entire right of the money remaining on the no te 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 roofing job. Cady 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 authorise 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 acqui re 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, arranged to borrow $5,000 from cost. chime prepared a note, which Adams read laboriously. As Adams was about to sign it, Bell diverted Adamss attention and substituted the following paper, which was identical to the note Adams had read except that the amounts were different On June 1, 2011, I promise to pay Ben Bell or order Twelve Thousand Dollars with interest 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 paid him $10,000. Fore presented 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 wellhead 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- covered 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 the check has already been cashed in by Howard who has nothing to do with the transaction, if Donna had the check and dint cash it then 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 clean-living by C, D, E, and F. G, the present holder, strikes out Ds indorsement. What is the indebtedness of D on her indorsement? 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 plant Omega as his agent to find and purchase for him a 1930 Dodge automobile in right condition, and Omega located such a car. Its owner, Roe, agreed to sell and deliver the car on January 10, 2011, for $9,000. To turn out 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 Dollars 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 Do dge automobile. (Signed) Omega, agent Smith stole the note from Roes mailbox, indorsed Roes name on the note, and like a shot discounted it with Sunset Bank for $8,700. Not having received the note, Roe sold the car to a third party.On January 10, the bank, having discovered 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 search 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 revolutionize side of the note, the following appears X John ament Sec. & Treas. National 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 miserable vision, went to an automated teller machine ( automatic teller) to withdraw $200 on February 1. Joshua saw that Jason was having great difficulty interlingual rendition the computer screen and offered to help. Joshua obtained Jasons personal 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 another $150. What is Jasons liability, if any, for the unauthorized use of his account? Jason would have full liab ility on the unauthorized use of his account, and would be reac assign 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 Trust, 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 destroys check to Boehmer and A.C. Manufacturing Company as payees. The check was given to Boehmer, who then 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. The check was presented to and paid by Birmingham Trust on July 22. When the loan became delinquent in March of the following year, Birmingham Trust contacted A.C. Manufacturing Co mpany 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 repayment from Central Bank under Centrals endorsement of prior indorsements? Explain. Birmingham believe 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 leadments.11. Lile, an insurance broker who handled all insurance for pacing Co., purchased a fire policy from Insurance 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. Prior to cancellation, however, Tempo suffered a loss. Tempo now makes a claim against Insurance Company on the policy. The premium had been billed to Lile but was recreational at the time of l oss. 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, horn in White, his valuable Picasso painting. Knowing that treasure would celebrate his ordinal natal day on May 15, Burke sent a letter to Jimmy on April 14 stating Dear Jimmy,Tomorrow I leave on my annual trip to Europe, and I want to make you a fitting birthday gift, which I do bysending you my enclosed promissory note. similarly 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 negotiable 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 stroke wh ile motoring in France. First Bank was appointed administrator of Burkes realm. Jimmy presented the note to the administrator and demanded payment, which was refused. Jimmy brought an action against First Bank as administrator, seeking recovery on the note. The administrator in turn brought an action against Jimmy, seeking the return of the Picasso. (a) What termination 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 reduce conveyed a farm to Ad tear to have and to hold for and during his life and upon his death to Rubin. Some age thereafter, oil was discovered in the vicinity. Ad domain 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. Assuming 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 owned dispiritedacre in fee simple absolute. In section 3 of a right executed will, Smith devised Blackacre 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 clause of Smiths will provided All the residue of my real and personal property not disposed of heretofore in this will, I devise and bequeath to Stanford University. Smith 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 receiv e 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 joint tenancy. All the residue of Teresas estate was left to Hillman College. While going 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 question? Amos, Brenda, and Clive, heirs would be entitled to their piece of grounds 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 sub j udice title of record to near tracts of land, each consisting of a number of five acres. Stanley fenced his five acres in 1986, placing his east fence 15 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 cultivation 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 owned 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 Ju ly 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 signature for it to be valid.8.The city of Boston sought to chastise land in fee simple for use in constructing an intrigue to an underground terminal for a subway. The owners of the land contend that no more than surface and subsurface easements are necessary for the terminal entrance and seek to retain air rights above thirty-six feet. The city argues that any building utilizing t his airspace would require structural supports that would interfere with the citys plan for the terminal. The city concedes that the properties around 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 Indolent 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 the income paid him by the trustee. Among the assets of the trust were one thousand shares of ABC Corporation and one thousand shares of XYZ Corporation. About two years before the termination of the trust, Collins, at a fair price and aft er full explanation to Indo- lent, purchased from the trust the ABC stock. At the alike(p) time but without saying anything to Indolent, he purchased the XYZ stock at a price in extravagance 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 his second wife, Dorothy Welch, and his daughter by his first marriage, Patricia Fisher. At the time George and Dorothy were married, George was invery unfortunate health and he relied on Dorothy to care for him. During the eight months Ge orge 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 help 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.