Business Law essay Analysis

Order 13479341  Topic:  Business Law

1. Adam Chandler Landscapers, Inc., enters into a contract with Palmer Courtlandt to resurface the Courtlandt`s driveway .Adam Chandler, by mistake stops at the Martin residence and resurfaces Joseph Martin`s driveway. Joseph Martin lives next door to Palmer Courtlandt and knows that Chandler is at the wrong residence. Martin says nothing and watches as Chandler resurfaces Martin`s driveway. Is Joseph Martin under any contractual obligation to pay Chandler for resurfacing his driveway? Is Palmer Courtlandt still liable under the contract? Explain Your Answer.

ANSWER: Martin is still liable because of implied agreement.  The basis of liability under US law is under § 1-303 § and 1-304, pertinent of which  read:

“Course of performance, course of dealing, and usage of trade.

(a) A “course of performance” is a sequence of conduct between the parties to a particular transaction that exists if:

(1) The agreement of the parties with respect to the transaction involves repeated occasions for performance by a party; and

(2) The other party, with knowledge of the nature of the performance and opportunity for objection to it, accepts the performance or acquiesces in it without objection.

 (d) A course of performance or course of dealing between the parties or usage of trade in the vocation or trade in which they are engaged or of which they are or should be aware is relevant in ascertaining the meaning of the parties’ agreement, may give particular meaning to specific terms of the agreement, and may supplement or qualify the terms of the agreement. A usage of trade applicable in the place in which part of the performance under the agreement is to occur may be so utilized as to that part of the performance.

§ 1-304. Obligation of good faith.

Every contract or duty within the Uniform Commercial Code imposes an obligation of good faith in its performance and enforcement. (5A Del. C. 1953, § 1-203; 55 Del. Laws, c. 349; 74 Del. Laws, c. 332, §

The performance done by  Adam Chandler, was done in good faith and Martin did not object therefore  Marin should  held be liable for the price of resurfacing done.

Palmer Courtlandt is not liable  under the contract under the contract because he received no benefit from Adam Chandler. The contract was not consummated hence no source of obligation.

Reference: http://www.delcode.state.de.us/title6/c001/sc03/index.htm#TopOfPage

2. William Thomas II of Wendy`s enters into an employment contract with Todd Manning who is currently an accountant with McDonalds. Under the terms of the contract Manning will receive an annual salary of $300,000 guaranteed for 7 years and a 100,000 bonus if he appropriates from McDonald’s the recipe for the `special sauce` in the McDonald’s Big Mac. Todd performs his end of the agreement and turns over the secret ingredient to the `special sauce`. William Thomas II refuses to employ Manning and pay for his services. Todd sues. What result? Explain Your Answer.

Answer :

The appropriation done is illegal and hence Todd has no right whatsoever to benefit from his illegal act. The pertinent provisions are § 841 and § 846 which provide:

§ 841. Theft; class G felony; class A misdemeanor; restitution.

(a) A person is guilty of theft when the person takes, exercises control over or obtains property of another person intending to deprive that person of it or appropriate it. Theft includes the acts described in §§ 842-846 of this title.

§ 846. Extortion; class E felony.

A person commits extortion when, with the intent prescribed in § 841 of this title, the person compels or induces another person to deliver property to the person or to a third person by means of instilling in the victim a fear that, if the property is not so delivered, the defendant or another will:

 (2) Cause damage to property; or

 (8) Perform any other act which is calculated to harm another person materially with respect to the person’s health, safety, business, calling, career, financial condition, reputation or personal relationships.

The law does not allow any one to benefit from an illegal act. Since the object is illegal, the contract is void, hence there is no source of obligation.

Reference: <http://www.delcode.state.de.us/title11/c005/sc03/index.htm#TopOfPage

3. Greenlee Smythe decides that for her 17th birthday she wants a new Mercedes Benz. She withdraws the money from her trust account with her parents` blessings. Greenless goes to the Benz Dealer and purchases a new Mettalic Green Benz, for cash. After a couple of weeks, Greenlee decides that the color of the car clashes with her red hair. Greenlee returns the Benz and seeks to disaffirm the contract. What result? Explain Your

Answer: Greenlee Smythe could not just change her mind after the consummation of the contract. At the time of the perfection of the contract the agreement as to the color was clear hence she could not just change her mind.

The pertinent provisions of the law are:

§ 2-401. Passing of title; reservation for security; limited application of this section.

Each provision of this Article with regard to the rights, obligations and remedies of the seller, the buyer, purchasers or other third parties applies irrespective of title to the goods except where the provision refers to such title. Insofar as situations are not covered by the other provisions of this Article and matters concerning title become material the following rules apply:

 (2) Unless otherwise explicitly agreed title passes to the buyer at the time and place at which the seller completes his performance with reference to the physical delivery of the goods, despite any reservation of a security interest and even though a document of title is to be delivered at a different time or place; and in particular and despite any reservation of a security interest by the bill of lading

 (3) Unless otherwise explicitly agreed where delivery is to be made without moving the goods,

(a) if the seller is to deliver a tangible document of title, title passes at the time when and the place where he delivers such documents and if the seller is to deliver an electronic document of title, title passes when the seller delivers the document; or

(b) if the goods are at the time of contracting already identified and no documents of title are to be delivered, title passes at the time and place of contracting.

(4) A rejection or other refusal by the buyer to receive or retain the goods, whether or not justified, or a justified revocation of acceptance revests title to the goods in the seller. Such revesting occurs by operation of law and is not a “sale”. (5A Del. C. 1953, § 2-401; 55 Del. Laws, c. 349; 70 Del. Laws, c. 186, § 1; 74 Del. Laws, c. 332, § 9.)

The buyer has accepted the good without objection at the time the car was delivered to her and that happened when he paid cash. At that moment seller had performed its part and the buyer  did not complain about the color then. It was only weeks after that she wants to cancel the sale. At the time he could no longer revoke because her ground of revocation was not valid. The color of the car could not be hidden at the time of delivery, hence a valid acceptance is presumed.

Reference: http://www.delcode.state.de.us/title6/c002/sc04/index.htm#P17_137.

Her revocation is not one of the grounds as enumerated below:

§ 2-608. Revocation of acceptance in whole or in part.

(1) The buyer may revoke his acceptance of a lot or commercial unit whose non-conformity substantially impairs its value to him if he has accepted it

(a) on the reasonable assumption that its non-conformity would be cured and it has not been seasonably cured; or

(b) without discovery of such non-conformity if his acceptance was reasonably induced either by the difficulty of discovery before acceptance or by the seller’s assurances.

(2) Revocation of acceptance must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by their own defects. It is not effective until the buyer notifies the seller of it.

(3) A buyer who so revokes has the same rights and duties with regard to the goods involved as if he had rejected them. (5A Del. C. 1953, § 2-608; 55 Del. Laws, c. 349; 70 Del. Laws, c. 186, § 1.)

reference: <http://www.delcode.state.de.us/title6/c002/sc06/index.htm >

Part II ,Multiple Choice(just write the answer for each question)

1. The requirement that each party to a contract must exchange something of value as an inducement to the other party to make a return exchange is known as:

a. Mutual assentb.Considerationc.Legality of objectd.Contractual capacity

Answer:  b . consideration

2. A person who makes a promise is a/an:a.Offerorb.Executorc.Promiseed.Promisor

Answer: d.Promisor

3. If there is no time specified for the acceptance of an offer, when does the offer terminate?a. After 24 hoursb. After 48 hoursc. After 10 business daysd. After a reasonable period of time

d. d. After a reasonable period of time

4.In general, which of the following will not terminate an offer?

a. The death of the offereeb. The death of the offerorc. An acceptance that adds a material termd. An inquiry by the offeree as to clarification of a term

Answer: d.An inquiry by the offeree as to clarification of a term

5.Gabriel offers to sell her video camera to Bree for $200 and also stated to Bree, `I will give you two weeks to accept my offer.` One week later, Bree learns that Gabriel sold the ficeo camera to Susan.a. Gabriel  has revoked her offer to Breeb. Gabriel’s offer is a firm offer and she must sell a video camera to Bree for $200c. Gabriel must get the camera back from Susan if Bree accepts within the two weeksd. Both a and b.

Answer: b. Gabriel’s offer is a firm offer and she must sell a video camera to Bree for $200

6.Lynn offers to sell his house to Dennis for $400,000. Dennis responds,`I will pay you the $400,000, if you paint the second floor.` This response is:

a A rejectionb. An invitationc. A counterofferd.An acceptance

Answer: c. A counteroffer

7. Lynn paints the second floor and again offers to sell it to Dennis for $400,000.. Dennis accepts and agrees to purchase the house for $400,000. The next day, the house burns down. The offer is:

a. still validb. delayed until Lynn can re-build the housec. delayed until Dennis can re-build the housed. terminated

Answer  d. terminated

8. The usual remedy for breach of contract is:a. Punitive damagesb. Specific performancec. Money damagesd. Injunction

Answer: c. Money damages

9. Which of the following are competent to give binding assent to a contract?a. Teenagersb. Insane personsc. Convictsd. Persons under guardianship

.

Answer: Teenagers

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