Andria was invited to a gala dinner and wanted to buy an expensive dress so she visited Marian, a well-known fashiondesigner. They entered into a contract for the acquisition of the for a total price of 2000 dollars. After finishing with thedress, Marian received a call from Andria saying that she no longer needed the dress because the dinner party wascancelled. Marian already paid for 1500 dollars on fabric and immediately started an action against Andria forbreach of contract. However, two weeks before the court hearing, Marian sold the dress for the same amount of moneywhich she would have receive from Andria.REQUIRED:State the purposes of awarding damages for breach of contractState the duty to mitigate lossState the level of damages Marian can claim for breach of contract

Contracts are a vital aspect of any legally binding agreement that outlines the obligations of the…

Answered: Andria was invited to a gala dinner and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Anita and Duncan had been partners for many years in a mercantile business. Their relationship deteriorated to the point at which Anita threatened to bring an action for an accounting and dissolution of the firm. Duncan then offered to buy Anita’s interest in the partnership for $250,000. Anita refused the offer and told Duncan that she would take no less than $360,000. A short time later, James approached Duncan and informed him he had inside information that a proposed street change would greatly benefit the business and that he, James, would buy the entire business for $1 million or buy a one-half interest for $500,000. Duncan made a final offer of $350,000 to Anita for her interest. Anita accepted this offer, and the transaction was completed. Duncan then sold the one-half interest to James for $500,000. Several months later, Anita learned for the first time of the transaction between Duncan and James. What rights, if any, does Anita have against Duncan?
Betty Boop started a small toy factory, Boopy Doop, Inc., in her garage and incorporated it in March of 2014 as a calendar-year corporation. At that time, she began using her personal computer and tools solely for the business as part of her contribution to the corporation. The computer cost $2,700 but had a fair market value of only $900 at conversion and the tools, which had cost $1,500, were valued at $1,100. During 2014, Boopy Doop, Inc. purchased two machines: Gadget 1, purchased on May 2, cost $24,000; Gadget 2, purchased on June 5, cost $40,000. The corporation expensed Gadget 1 under Section 179. The computer, tools, and Gadget 2 were depreciated using accelerated MACRS only. The corporation did not take any depreciation on the garage nor did Betty charge the business rent because the business moved to a building purchased by Boopy Doop, Inc. for $125,000 on January 5, 2015. On January 20, 2015, Boopy Doop, Inc. purchased $4,000 of office furniture and on July 7, it purchased…
Stan sold goods to Bill in good faith, believing him to be a principal. Bill in fact was acting as agent for Nancy and was within the scope of his authority. The goods were charged to Bill, and on his refusal to pay, Stan sued Bill for the purchase price. While this action was pending, Stan learned of Bill’s relationship with Nancy. Nevertheless, thirty days after learning of that relationship, Stan obtained judgment against Bill and had an execution issued that was never satisfied. Three months after rendition of the judgment, Stan sued Nancy for the purchase price of the goods. Is Nancy liable? Explain.
In September, Amina hired Bryan as a delivery man. Bryan was to commence work on 1 November. On 1 October, Amina wrote to Bryan telling him that, despite their agreement, economic circumstances were such that she no longer required his services. Can Bryan sue Amina? Explain your answers in light of the principles learned on breach of contract. (maximum 500 words)
Joanna takes a security interest in the equipment in Jason Store and files a financing statement claiming “equipment and all after acquired equipment.” Berkeley later sells Jason Store a cash register, taking a security interest in the register, and (a) files nine days after Jason receives the register or (b) files twenty-five days after Jason receives the register. If Jason fails to pay both Joanna and Berkeley and they foreclose their security interests, who has priority on the cash register? Explain.

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