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Chapter 10, Problem 2CT
Summary Introduction

Case summary:The person S was a finance director at company T. He has frequently complained to the General Manager C of one of the managers IM for his behavior and attitude. The General Manager could not fire the person IM as he brought a lot of business to the company. One day, while IM was dropping a cash envelope into a safe, it got stuck. The person S stole it. General Manager asked the responsible party to return the envelope within twenty hours to avoid criminal charges. The person S returned the envelope after the due hours. He was charged with embezzlement.

To Find:The reasons for conviction on grounds of embezzlement instead of larceny.

Summary Introduction

Case summary:The person S was a finance director at company T. He has frequently complained to the General Manager C of one of the managers IM for his behavior and attitude. The General Manager could not fire the person IM as he brought a lot of business to the company. One day, while IM was dropping a cash envelope into a safe, it got stuck. The person S stole it. General Manager asked the responsible party to return the envelope within twenty hours to avoid criminal charges. The person S returned the envelope after the due hours. He was charged with embezzlement.

To Find:The difference between embezzlement and larceny.

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19-2. Duty of Loyalty. Peter hires Alice as an agent to sell a piece of property he owns. The price is to be at least $30,000. Alice discovers that the fair market value of Peter's property is actually at least $45,000 and could be higher because a shopping mall is going to be built nearby. Alice forms a real estate partnership with her cousin Carl. Then she prepares for Peter's signature a contract for the sale of the property to Carl for $32,000. Peter signs the contract. Just before closing and passage of tittle, Peter learns about the shopping mall and the increased fair market value of his property. Peter refuses to deed the property to Carl. Carl claims that Alice, as Peter's Agent, solicited a price above that agreed on when the agency was created and that the contract is therefore enforceable. Discuss fully whether Peter is bound to this contract. (See Duties, Right, and Remedies of Agents and Principals.)
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