Homework 11 Assignment TURN IN (1)
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School
Michigan State University *
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Course
385
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
Pages
3
Uploaded by KidHornetMaster501
11/6/23
Homework #11
GBL385-731
Julian Ly
QUESTIONS FOR HOMEWORK 11
TRUE/FALSE QUESTIONS
T or F 1. An accord and satisfaction discharges the original contract upon the formation of the
accord.
T or F 2. All rights in a contract can be assigned by either party.
T or F 3. Substantial performance entitles the performing party to full payment of the
contract price.
T or F 4. Substantial performance is performance that is complete enough that there is no
breach.
T or F 5. In general, an oral contract that the Statute of Frauds requires to be in writing is
voidable.
T or F 6. To be sufficient under the Statute of Frauds, a written contract must be signed by
the party who is bringing a suit to enforce the contract.
T or F 7. Fraud in the inception exists when the misrepresentation occurs at the beginning of
negotiations.
T or F 8. A contract entered into because of duress is illegal and thus, void.
T or F 9. The primary goal of compensatory damages is to place the parties in the position
that they were in prior to the formation of the contract.
T or F 10. Specific performance is the primary remedy used to make a party live up to its
obligations under a personal services contract.
ESSAY QUESTIONS
1. Can a star NBA guard, under an 8-year multimillion dollar contract be required to play if he
does not want to? Please briefly explain.
- No, he cannot be required to play. The reason being that for the point guard to legally
object, the contract must fulfill the requirements of being reasonable duration. 8 years is
nearly a decade and a long career relative to the NBA. This would most likely result in a buyout
and a hold for the remaining time of his contract where he cannot join other teams.
2. Alex rented a small one-bedroom beach house in Martha’s Vineyard that had an attached
one-car garage. Alex customarily parked his 2009 Porsche 911 GT2 RS in the garage. After
purchasing a new Jet Ski, Alex realized he had nowhere to store it. Alex approached his
neighbor Leon and said, “If you’ll let me store my jest ski in your garage I’ll pay you $100 a
month, as long as you agree to take out insurance to guard against any casualty loss.” Leon
agreed and promised to use reasonable care in the storage of Alex’s Jet Ski.
When Alex arrived with the Jet Ski at Leon’s house, he said to Leon, “Since the time we made
our agreement, I realized the Jet Ski is covered under my own homeowner’s insurance policy,
so it won’t be necessary for you to take out additional insurance.” Two months later Leon’s
house was destroyed by a fire. The Jet Ski was also ruined in the fire. Afterwards, Alex learned
that the Jet Ski was excluded under his homeowner’s policy and was not covered by insurance.
11/6/23
Homework #11
GBL385-731
Julian Ly
At the time of the fire, the Jet Ski was valued at $3,800. Alex sues Leon to recover damages for
the loss of his Jet Ski. The judgment should be for Alex or Leon? Please briefly explain.
The judgement should be for Leon. Although the initial agreement included insurance, the key
point of this contract was when it was mutually agreed to be modified by the offeree (alex) to
remove the insurance since he claimed it would be covered under his personal insurance.
Making that part of the contract voidable and the lawsuit incapacitated.
3. Mary Homeowner hired Ken Builder to construct a beach house in Cape Matters along the
outer banks of the Georgia coastline. According to the written building contract, Mary
Homeowner agreed to pay Ken Builder $500,000 for the construction work and, in return, Ken
Builder promised to build the beach house (in accord with the architectural specifications) and
to pave a driveway along the side of the house.
While the home was being constructed, Mary Homeowner decided that she wanted to plant a
garden on the space originally set aside for the driveway. As a result, Mary Homeowner and Ken
Builder orally agreed that Ken Builder would not be required to pave the driveway. However,
after Ken Builder completed the construction of the beach house, Mary Homeowner changed
her mind and told Ken Builder she wanted the driveway paved after all. Citing their oral
agreement, Ken Builder refused. If Mary Homeowner sues Ken Builder for breach of contract
based on Ken Builder’s failure to pave the driveway, who should win? Please briefly explain.
In this situation, ken builder would most likely prevail if mary is to sue him for a breach of the
contract based on his failure to deliver the work.
Mary and ken entered an oral agreement when it was agreed ken did not have to pave the drive
way and ken agreed. Oral modifications are valid in this situation, especially since both parties
agreed. Mary will have a difficult time winning this case because that part of the contract was
voided in the new mutual contract.
FILL-IN QUESTIONS
1. A condition that requires the occurrence of an event before a party is obligated to perform
a promise under a contract is a condition
precedent
2. The parties to a contract may agree to settle a contract dispute by a(n)
Accord
and
Satisfaction
whereby the parties agree to accept something different in full performance of the
original contract.
3. The damages to which parties to a contract agree in advance if a contract breach occurs
are referred to as
liquidated damages
4.
Reformations
allows a court to rewrite a contract to reflect the parties’ real intentions.
5. Under
Novation
all parties to a contract agree for a third party to substitute one of the
original parties.
“On my honor, as a Spartan, I have neither given nor received unauthorized aid
on this academic work, nor have I knowingly tolerated any violation of the
Honor Code or All-University Policies stated in the syllabus."
11/6/23
Homework #11
GBL385-731
Julian Ly
X
Julian Ly, 11/6/2023
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