(a)
Case summary: Person T, a real estate broker, voluntarily went on and showed a townhouse to the couple named JS and JR. The owner of the townhouse was R and H. In the absence of T, JS and JR revisited the townhouse with an objective to purchase it and agreed to purchase on the same day. There was a condition mentioned in the contract that the fees of the real estate broker would be paid in case someone bought the property.
To find: Whether JS and JR are entitled to pay person T, even though she was not present to show the townhouse to the couple.
Case summary: Person T, a real estate broker voluntarily, went on and showed a townhouse to the couple named JS and JR. The owner of the townhouse was R and H. In the absence of T, due to some religious belief, JS and JR revisited the townhouse with an objective to purchase it and agreed to purchase on the same day. A condition was mentioned in the contract which clearly stated that the fees of the real estate broker would be paid by the buyer.
To find: The obligation of the parties involved in the business deals.
Case summary: Person T, a real estate broker, voluntarily went on and showed a townhouse to a couple named JS and JR. The owner of the townhouse was R and H. In the absence of T due to some religious belief, JS and JR revisited the townhouse with an objective to purchase it and agreed to purchase on the same day. A condition was mentioned in the contract which clearly stated that the fees of the real estate broker would be paid by the buyer.
To find: The ways in which this situation could have been avoided.
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Chapter 13 Solutions
The Legal Environment of Business: Text and Cases
- 1. Wong, a Mathematics teacher made an advertisement in her facebook for Mathematics tuition with a ‘Money back guarantee for those who did not get an “A” in the SPM examination”. Shah enrolled his daughter, Teyha to Wong’s tuition class. When Teyha sat for the SPM examination, she obtained a “B” for her Mathematics paper. Shah went to see Wong and demanded that he return the tuition fees that he paid him. Wong refuses to return the fees to Shah. a. Advise Shah in this matters. b. In the course of your answer, explain FOUR (4) situations that may lead to invitation to treat. Support your answers with Contracts Act 1950 and decided cases.arrow_forwardWhat is the contra proferentum rule and how does this apply to exclusion clauses? Which of the following is correct? The contra proferentum rule applies so that an exclusion clause is always interpreted by a court against the party relying on it The contra proferentum rule basically means that an exclusion clause is contrary to the interests of consumers and therefore unenforceable as a term Contra proferentum refers to the ability of consumer law to set a contrary term to that of the parties within a contract The contra proferentum rule means that the party relying on the exclusion clause must be able to prove that the other party agreed to it, otherwise it is not enforceablearrow_forwardJoan, who is a massage therapist graduate, incorporated a massage type business with one of her minor children as the shareholder. Michelle, who is also her best friend, is a regular client of which Joan had rendered massage services each month. Michelle paid Joan’s professional service thru her insurance benefits from her company. Michelle felt that she wants one more massage service and, this time, she used the insurance benefits of her son, Jake, and her son’s name as though the client of Joan. Joan issued a receipt in the name of Jake. Can a minor be shareholder? Can a minor shareholder act as director as well? What is the legal issue with respect of using the insurance benefits of family member. Also, on ethics and professional conduct. The majority shareholders of the ABC Corporation wanted to sell its main assets. The directors called a meeting of shareholders of which the shareholders passed resolution instructing the board of directors to go ahead with the sale, despite…arrow_forward
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- "Warranties.Harold Moore bought a barrel-racing horse named Clear Boggy for $100,000 for his daugh-ter. The seller was Betty Roper, who appraises barrel-racing horses. (Barrel racing is a rodeo event in which a horse and rider attempt to complete a cloverleaf pattern around preset barrels in the fastest time.) Clear Boggy was promoted for sale as a competitive barrel-racing horse. On inquiry, Roper repre-sented that Clear Boggy did not have any performance issues or medical problems, and that the only medications the horse had been given were hock injections, a common treatment.Shortly after the purchase, Clear Boggy began exhibiting significant performance problems, including nervousness, unwillingness to practice, and stalling during runs. Roper then disclosed that the horse had been given shoulder injec-tions prior to the sale and had previously stalled in competi-tion. Moore took the horse to a veterinarian and discovered that it suffered from arthritis, impinged vertebrae,…arrow_forwardYou are served with Plaintiff's complaint. Plaintiff is suing you! You are furious. Should you ignore Plaintiff's complaint and hope it goes away? Why or why not? What could possibly go wrong? If you do respond to Plaintiff's complaint, should you just deny all of Plaintiff's allegations so Plaintiff will go away, or include something else?arrow_forwardLouisa, who is not a real estate license holder, owns three single-family residences, which she rents out. (She does not occupy any of the residences). Does she have to abide by the Fair Housing Act when selecting tenants? Louisa is exempt from the Fair Housing Act, although she may not use discriminatory advertising. Louisa is exempt from the Fair Housing Act under the Mrs. Murphy exemption. Louisa is not exempt from the Fair Housing Act. Louisa is not exempt under the Fair Housing Act, but she is exemptunder the Florida Residential Landlord and Tenant Act.arrow_forward
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