Book Title
10th Edition
ISBN: 9781337605656
Author: CROSS
Publisher: CENGAGE L
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Chapter 15, Problem 1IS
Summary Introduction
Case summary: Person J enters into a contract with person L of a company MR to fix the roof for person J. Person J pays half price of the contract in advance and refuses to pay the remaining amount for the work done by person L.
To find: The action that person L and company MR can take to claim the outstanding payment.
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Dimitri lends his brother, Calvin, $1,800. Calvin and Willa agree that Calvin will build a new pool
deck for Willa in exchange for Willa paying Dimitri $1,800. Calvin builds the pool deck, but Willa
refuses to pay Dimitri any money. Can Dimitri sue for payment?
O No, because Dimitri was not a party to the contract.
O No. because Dimitri did not build the pool deck.
O Yes, because Dimitri is a donee beneficiary.
O No, because Dimitri is an incidental beneficiary.
Yes, because Dimitri is a creditor beneficiary.
State whether the following contracts are valid, unenforceable or illegal.
a) Sam pays $10,000 to dispose of his mother-in-law
b) Ernie offers $20,000 to Emilio for Emilio’s block of land. Emilio accepts, but nothing is signed
c) Fred asks ABC Insurance to insure his new car. The company agrees but nothing is signed.
d) Zoe agrees to lease a shop from Ian for 10 years. No lease has been signed.
e) X and X are bank robbers. They employ George to drive their getaway car.
Assume that Elkins contracted to build an addition to Cromwell’s plant producing cruise missiles just prior to the Gulf War. The war ended before Elkins started work, and Cromwell tried to cancel the contract. Can Elkins do anything about the loss of his anticipated profit (a) if the contract contained a proper cancellation clause? (b) if the contract contained no clause dealing with cancellation?
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