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- State the effect of illegality on a contract.Pollard Ltd. is a publisher, specializing in producing fictional books. In January 2023, they decided to produce a new edition of a particular book and contracted Jane and Donald. Jane will provide the text and Donald will produce the extensive diagrams. Each of them are to be paid $50,000. The contract between Pollard Ltd and Jane required the text to be produced by 30th April 2023. The terms of Donald’s contract required the diagrams to be submitted by 30th June 2023. In March 2023, Jane informed Pollard Ltd that she would not supply the finished text on time, unless Pollard Ltd increased her payment by $10,000. Pollard Ltd agreed to the increase. However, when Jane submitted her invoice on delivery of the text on the 28th April 2023, Pollard Ltd refused to pay the additional amount of $10,000, arguing that they will only pay the contracted sum of $50,000. Since Jane was merely performing what she was contracted for and did not provide any additional services to warrant any increases…1. Life Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Eren to Armin, the furnished information is mistaken. The contract between Eren and Armin that includes the mistake may be rescinded if the mistake concerns a. a detail on which the parties had a true “meeting of the minds.” b. a fact that is important and central to the contract. c. a third party, such as County Title. d. a term in the contract subject to only one reasonable interpretation.
- George develops upper- and middle-income townhouses and condo flats. He hired Pommella as his agent to sell the flat. Pommella is engaged on a fixed-term contract and is paid a predetermined salary plus commission according on the number of flats she sells. George is considering ending the agency relationship with Pomella. Explain to him THREE (3) options to end the relationship lawfully under agency law.Questin 3 (b) Explain the circumstances that contracts made by minors are enforceable.Lowell Shoemaker, an architect, was hired by Aff- house to work on a land development project. In September Shoemaker contacted Central Missouri Professional Services about providing engineering and surveying services for the project. Central submitted a written proposal to Shoemaker in October. About a week later, Shoemaker orally agreed that Central should proceed with the work outlined in the pro- posal. When the first phase of the work was com- pleted, a bill of $5,864.00 was sent to Shoemaker. Shoemaker called Central and requested that all bills be sent directly to the owner/developer, Affhouse. When the bills were not paid, Central sued Shoe- maker and Affhouse. The trial court entered a judg- ment against Shoemaker for $5,864 and he appealed. Shoemaker acknowledged that he did not disclose the identity of the principal to Central at the time the transaction was conducted, and explained:Q. You never told Mike Bates or Central Missouri Professional Services that you were an agent…
- Presley and Collins enter into a contract that requires Presley to pay Collins $100 per kitten provided by Collins' breeding program to be sold in Presley's pet store. When Presley's attorney drafts the contract, the attorney accidentally puts the price at $1,000 per kitten. When Collins sues to enforce the contract as written, a court will likely decide that a. Presley must pay $1,000 per kitten. b. a mistake was made in the contract and Presley must pay $100 per kitten. c. Presley need not pay anything due to the mistake. d. Collins must pay Presley's attorney for drafting the contract.Mike's Landscaping Inc. enters into an oral contract with the Padres to keep the infield in top condition for the next five years. Six months into the contract the Padres fire Mike. What will happen in a breach of contract suit filed by Mike? Mike will lose because the contract was not in writing Mike will win because he was never late and his work was first rate. O The Padres will lose Mike will win and be awarded the profit he would have made had the contract been performed.Taking Sides Stuart Studio, an art studio, prepared a new catalog for the National School of Heavy Equipment, a school run by Gilbert and Donald Shaw. When the artwork was virtually finished, Gilbert Shaw requested Stuart Studio to purchase and supervise the printing of twenty-five thousand catalogs. Shaw told the art studio that payment of the printing costs would be made within ten days after billing and that if the "National School would not pay the full total, he would stand good for the entire bill." Shaw was chairman of the board of directors of the school, and he owned 100 percent of its voting stock and 49 percent of its nonvoting stock. The school became bankrupt, and Stuart Studio was unable to recover the sum from the school. Stuart Studio then brought an action against Shaw on the basis of his promise to pay the bill. a. What are the arguments that Shaw is not liable on his promise? b. What are the arguments that Shaw is liable on his promise? C. Is Shaw obligated…
- 13-2. Undue Influence. Juan is an elderly man who lives with his nephew, Samuel. Juan is totally dependent on Samuel's support. Samuel tells Juan that unless he transfers a tract of land he owns to Samuel for a price 35 percent below its market value, Samuel will no longer support and take care of him. Juan enters into the contract. Discuss fully whether Juan can set aside this contract. (See Voluntary1. Seller and Buyer negotiate for the sale of 100 acres of land. They orally agree on a price of $100,000, one half in cash at closing and the other half 90 days after closing. Buyer sends Seller a letter in which all the terms are included and is signed by Buyer. Seller never responds. When the closing date arrives, Seller refuses to transfer title. Buyer sues. Is the agreement enforceable at law? 2. Seller and Buyer negotiate for the sale of 100 acres of land. They orally agree on a price of $100,000, with payment to be made within 10 days and the deed delivered within another 30 days. Buyer sends Seller a letter in which all these terms are included, along with a check for $100,000 that Seller deposits. Seller fails to deliver a deed, and Buyer seeks to enforce the contract. Is the contract enforceable? 3. John is president and sole shareholder of Photo, Inc. Photo, Inc. wishes to borrow money, but to do so, the bank requires John to orally guarantee to repay the loan if…On August 20, Hildebrand entered into a written contract with the city of Douglasville whereby he was to serve as community development project engineer for three years at an “annual fee” of $19,000. This salary figure could be changed without affecting the other terms of the contract. One of the provisions for termination of the contract was written notice by either party to the other at any time at least ninety days prior to the intended date of termination. The contract listed a substantial number of services and duties Hildebrand was to perform for the city; among the lesser duties were (a) keeping the community development director (Hildebrand’s supervisor) informed at all times of his whereabouts and how he could be contacted and (b) attending meetings at which his presence was requested. Two years later, on September 20, by which time Hildebrand’s fee had risen to $1,915.83 per month, the city fired Hildebrand effective immediately, citing “certain material breaches…of…