...“plaintiffs”) were business partners in the name of L & M Paint and Body Shop in Albuquerque, New Mexico. Prior to March 1962, Martinez operated a business under the name Del’s Paint and Body Shop. Martinez did his banking with defendant bank Albuquerque National Bank (the “defendant”) and dealt with Mr. Kopp, the vice-president of the bank. In February 1962, Martinez borrowed $500 from the defendant and deposited it into his bank account. On March 15, 1962, the plaintiffs formed a partnership in the name of L & M Paint and Body Shop. They opened a business bank account with the defendant and deposited $620. Two payments were made on the note for the $500 Martinez borrowed from the defendant. The payments were made with checks drawn on the plaintiff’s business bank account. Eventually, Martinez failed to make payments on the note and the defendant sued for recovery. On March 14, 1963, the amount remaining on the note was $402. Mr. Kopp wrote to L & M on behalf of the defendant stating that the business account had been charged the remaining $402 owed by Martinez. The following Monday, both plaintiffs met with Mr. Kopp to explain that the $402 was the personal indebtedness of Martinez rather than a partnership obligation. Mr. Kopp failed to re-credit the business account and with a remaining balance of $3.66, the account was closed. The defendant failed honor nine or ten checks written in the month of March that would have been honored had the defendant not debited the business account $402...
Words: 838 - Pages: 4
...the defendant, Baxendale, to deliver the crankshaft to engineers for repair by a certain date. Baxendale failed to deliver on the date in question, causing Hadley to lose some business. Hadley sued for the profits he lost due to Baxendale's late delivery, and the jury awarded Hadley damages of £25. Baxendale appealed, contending that he did not know that Hadley would suffer any particular damage by reason of the late delivery. Issue: Whether a defendant in a breach of contract case could be held liable for damages that the defendant was not aware would be incurred from a breach of the contract. Reasoning: The court said no to allowing Hadley to recover lost profits in this case, holding that Baxendale could only be held liable for losses that were generally foreseeable, or if Hadley had mentioned his special circumstances in advance. The mere fact that a party is sending something to be repaired does not indicate that they would lose profits if it was not delivered on time. The court suggested various other circumstances under which Hadley could have entered into this contract which would not have presented such dire circumstances, and noted that where special circumstances do exist, provisions can be made in the contract voluntarily entered into by the parties to impose extra damages for a breach. In this case, however, the court stated: "the loss of profits here cannot reasonably be considered such a consequence of the breach of contract as could have been...
Words: 997 - Pages: 4
...In the report I’ll analysing the remedies available to a business provider in the event of a breach of contract for the supply of goods and services. What are remedies? Remedies is when one of the parties breaks the terms of the contract, the parties which is injured will be able to gain some form of compensation for the loss of the contract. This is to aimed at ensuring that the injured party has not lost out. Damages There are two types of damages: liquidated damages and un-liquidated dames. Liquidated damages is that in a contract both party agree to pay the damage if one of them breach the contract, such as holiday booking, you have to agree the contract before you sign the papers. Un-liquidate damage is that they didn’t make how is going to pay the damages if an accident happens, they deal with the damage after something happened, this might take them to court because one of the party might don’t agree to pay the damages. Lien Lien is when you own a product and you have sent it away to fix it or for a upgrade, but when it fixed or upgraded you don’t have enough money to pay the fee, the contractor will have the right to keep the product until you have pay the full amount of the payment. Resale Resale can be a ready that occurs when a seller has goods that remain unpaid. For example if one of the customer ordered one of the product deliver to the shop, but he didn’t come to pay for it in time or didn’t inform the shop. The shop could sell it but the customer...
Words: 480 - Pages: 2
...the business, there are condition that need to applies from the good sold. If the goods do not fit any purpose then the goods have the right to be return whether it is implied by the seller but if it is unreasonable to rely on the seller judgement, the goods can be return or cannot be return due to another purpose. b) Supply Goods and service Act 1982 With the reasonable time and for a reasonable charge of work completion, the price of goods are not fixed. The trader also must have a proper standard of workmanship to provide the services. i) Transaction Covered Every product either it is free or purchase, it have to be in a good condition. ii) Effect of the Act It has a similar protection under the Sale of Goods Act 1979, the...
Words: 578 - Pages: 3
...the doctrine of mistake because there was no mistake the received an email about the agreement that was made between both parties. The only thing that would help is because they did not sign the agreement so it can be avoided Chou would value by having his product dispersed for sale throughout the network of retail that BTT as a board game company had at their disposal. BTT would profit by laying the blame on their cut for dispensing the game to these outlets. At the end of the scenario, BTT states that it is not interested in distributing Chou’s new strategy game, Strat. Assuming BTT and Chou have a contract, and BTT has breached the contract by not distributing the game, discuss what remedies might or might not apply. Compensatory damages – Chou could recover actual out of pocket which may include the original $25,000 due...
Words: 414 - Pages: 2
...The BP oil rig explosion was the second worst disaster in the U.S history, it resulted in the death of 11 employees and seriously injured 16 others, this resulted in one of the largest oil spills in the history of the world, this resulted in the Gulf of Mexico waters being covered in oil which killed thousands of animal life in the area and had a huge affect on the animal life and the eco system in the area. BP lost billions and the ongoing fight to repair the damage done to the environment is still going on. This is a great example of how operations ethically and unethically can affect a business and the environment around them, this disaster should be learnt from and should never be allowed to happen, BP suffered hugely due to this as their public image was destroyed and their relations with the communities living in the area where the explosion happened were extremely bad. D1:2 Impacts on BP BP has paid out due to this disaster up to $5billion to the people who have lost money and have been effected by the oil rig explosion this is not including the money they have lost form the tones of oil that they have lost and also the cleanup operation that they are heading. A disaster like this will have a very long and negative impact on BP as their reputation has been completely destroyed by this disaster and a large amount of the public both investors, customers and just other people in the communities have now pulled away from BP and look at them in an unethical manner due...
Words: 311 - Pages: 2
...Introduction: CPA, Calvin P. Anderson has a great deal of experience in services related to tax and financial statements as well as business consulting. In this case, He provided, for the first time, litigation services for a new attorney client. Those services require Calvin to be an Expert witness in the court. The following are a list of mistakes that the expert witness (Calvin) made in his engagement: * Insufficient preparation and experience in litigation support. (He have no experience in this field and He only attended a 3 day seminar before marketing for those services) * Calvin should have mentioned to the lawyer that he testified only once before in a divorce case and it was on tax services that he provided. * Calvin signed the engagement letter without carefully reviewing it. (Must importantly he should have reviewed it for any restrictions imposed on use and disclosure of his work, any conflict of interest exist with the attorney, fees and payment arrangements) * If Calvin has reviewed the engagement letter, he would have avoided the issue of independency related to fees, because the fees were tied to the trial results. * Lack of communication with his client, Lack of information (such as Plaintiff was disabled), inadequate examination of the issues presented, and wrong assumptions used for calculating potential damages. (An expert should review and rely on industry practices and professional standards instead of relying on opinion of single individuals...
Words: 461 - Pages: 2
...A revised standard for forensic accountants APES 215 Forensic Accounting Services (Revised December 2013) January 2014 Publication No. 14-01 1 2 2 Introduction APES 215 Forensic Accounting Services (Revised December 2013) Lawyers and barristers working with forensic accountants, and in particular those acting as Expert Witnesses, should be aware that the existing standard, APES 215 Forensic Accounting Services (‘APES 215’ or ‘the Standard’) has been revised. The revisions are designed to ensure the provision of quality and ethical Forensic Accounting Services. In this issue of Forensic Matters, Fionna Oliver-Taylor, a director in our Melbourne office, discusses the key revisions to APES 215, which include: • Guidance on the types of services that constitute Forensic Accounting Services. • Extending the definition of Expert Witness to include Members ‘otherwise obligated’. • Expert Witnesses may provide opinion or Other Evidence. The revised Standard The Australian Professional and Ethical Standards Board (‘the APESB’) revised APES 215 last month (December 2013) to replace the existing standard which was originally issued in December 2008. The revised Standard is effective for Engagements1 or Assignments2 commencing on or after 1 April 2014, with earlier adoption permitted. The revised Standard: • provides assistance to determine whether a particular service is a Forensic Accounting Service and if so, what type • requires the explicit identification of...
Words: 2309 - Pages: 10
...TORTS AND CYBER TORTS CHAPTER 12 Section 1: The Basis of Tort Law * A Tort law is designed to compensate those who have suffered a loss or injury due to another person’s wrongful act. It is meant to obtain compensation (monetary damages) or other remedies for the harm suffered. * The purpose of Tort Law: Tort law tries to protect certain things that society recognizes as an interest worth protecting such as property, intangible interests (personal privacy, family relations, reputation, and dignity) * Types of Damages available in Tort Actions: 1. Compensatory Damages – meant to compensate a plaintiff for actual losses such as special damages (compensation by quantifiable monetary losses) or general damages (compensation by nonmonetary aspects of harm suffered, such as pain and suffering). 2. Punitive Damages – Meant to punish the wrongdoers who have committed a reprehensible or egregious act so as to deter others from similar wrongdoing. This can include gross negligence and intentional tort actions Section 2: INTENTIONAL TORTS AGAINST PERSONS * In tort law, intent means only that the actor intended the consequences of his or her act or knew with substantial certainty that specific consequences would result from the act * Assault and Battery: Assault is any intentional and unexcused threat of immediate harmful or offensive contact, including words or acts that create in another person a reasonable apprehension of harmful contact. * False...
Words: 749 - Pages: 3
...Young argued that the firm had a conflict of interest when it continued to represent other employees of Young’s employer, and when their settlement included a rule barring the firm from suing the employer in the future. Young believed that the firm had waited to pursue her case until its other case was settled. The jury determined that Becker & Poliakoff knew that the case had been dismissed, but withheld that information from Young so they could settle the other case and secure the $2.9 million fee and cost reimbursement in that case. The jury returned a verdict for Young of $394,000 in compensatory damages as a result of Becker & Poliakoff’s breach of fiduciary duty. The total compensatory damages consisted of $144,000 in past lost wages and $250,000 in damages for “pain and suffering, mental anguish, or loss of dignity.” However, the court reduced the punitive damages to $2 million,...
Words: 1058 - Pages: 5
...that are involved in case example 3 with Cy not following through with the contract he signed several months after being hired at the computer firm include a “breach of contract.” HawkaWaka Inc. must have their best interest in mind as the result of Cy opening a competitor business may cause foreseeable harm. With this the company must ask the following questions to make sure they will be thoroughly prepared to take on the case with confidence. Additionally Cy must be able to prove that his company won’t pose and threat or loss of business to his former employer. In the defense of Cy, the employer did not require that this document be signed until several months after Cy was hired. Cy believed that not signing the contract would pose a threat to his job stability and felt obligated to sign it. What type of breach did the defendant commit and how will it affect the company? What type of damage will the defendant cause the company presently, and in the future? In this case example, the breach of contract fall under the “inferior performance” category. As a result the plaintiff has the right to prove that the defendant in fact broke the contract and find the best way to recover restitution and recover damages. In the defense of Cy, the company must be able the questions in their defense. These include, why was Cy not required to sign this document prior to being hired at the firm? Is this a special circumstance or are all employees required to sign this after being hired, or a some...
Words: 1136 - Pages: 5
...Legal Underpinnings of Business Law BUS 670 Legal Underpinnings of Business Law Breach of contract is when a business contract creates an obligation that is to be full filled by people or companies that enter into an agreement. By law a party’s failure to complete the bargain which is under contract is known as a breach of contract. With regard to the specifics of the contract a breach can happen when a party fails to perform on time or does not perform at all according to the terms of the agreement. Breach of contract is categorized as material or immaterial to determine the appropriate legal solution or remedy for the breach (Retures 2012). Compensatory damages put the non-breaching party in the position that they had been if the breach had not happened. Punitive damages are payments that the breaching parties have to pay. Above and beyond the point that would fully compensate the non –breaching party. Punitive damages are meant to punish a wrongful party for a wrongful act and is rarely is used for business contract settling. Specific performance is used when damages are inadequate as a legal remedy. The non – breaching party may seek an alternative remedy which is specific performance. Specific performance is known for describing as the breaching party court ordered performance of duty under the contract. Specific performance might be used as a remedy for breach of contract if the matter is rare or unique. Damages would not suffice to place the non-breaching party...
Words: 496 - Pages: 2
...Business I. Explaining how and why fraud invalidates a contract. A. There are certain grounds under which a compromise and settlement agreement can be invalidated. If a settlement agreement fails to establish certain elements like offer, acceptance and consideration, it can be invalidated. Similarly, a settlement agreement can be invalidated due to: * Fraud * Nondisclosure as fraud * Duress * Illegality * Mistake * Undue influence A compromise induced by fraud can be invalidated. In approving a proposed settlement agreement, a court must determine that the agreement is not the outcome of fraud. Fraud exists if all of the following elements are present: * An untrue representation of fact knowingly by a party * Making such representation recklessly * Making untrue representation to deceive the other party and to induce him/her to act upon the same. Similarly, an unintentional nondisclosure without an intention to deceive will not constitute fraud. However, a compromise can be invalidated for fraud if one party deliberately conceals facts with the intent to induce the action of other party. The duty of disclosure is more comprehensive when there is a fiduciary relationship between the parties to the compromise. At the same time, it cannot be presumed that the elements of fraud exist only because of the existence of a fiduciary relationship. Likewise, a person who makes a compromise as a result of duress invalidates the...
Words: 1599 - Pages: 7
...CONTRACT CREATION AND MANAGEMENT TO: John Sullivan FROM: Jon Sorrell DATE: October 27, 2006 SUBJECT: Legal Environment of Business: Contract Creation and Management The Issues In the case of Span Systems of California and Citizen-Schwarz AG of Germany, management is essential in forging the proper attitudes and remedies necessary to maintain the current contract. The facts of the case is that Span Systems are under a one-year contract worth $6 million to produce a Java-based transaction processing software for Citizen-Schwartz's $20 billion banking interests. Eight months into the contract, Span is currently running behind production schedule due to the many changes in C-S’s product demands and various “bugs” found in the software. C-S is asking for a rescission of the contract based on performance and has asked Span to transfer the remaining code so that they may proceed with another company. Damages could be substantial to C-S if the contract is not fulfilled within the given time frame. Assuming that C-S is guaranteed the contract with customer e-CRM, any product delay could spell possible consequential damages e-CRM could be due. “Consequential damages are damages that result because of the breach and generally involve such damages as lost business, lost profit, or late penalties” (Business, 568). C-S could seek compensatory damages from Span to cover their loss if affected by this delay. Remedies Contract ambiguity has left Span and C-S in a situation...
Words: 928 - Pages: 4
...Big Bank’s president also threatens legal action. What potential causes of action could you foresee him bringing in court? Possible causes for Big Bank legal action: Misrepresentation “Data processing systems were the fastest around” “Systems Inc. never missed a deadline” When one party to a contract is not given full or accurate information by the other party about the contract subject matter, misrepresentation occurs. In the case of misrepresentation in the formation of a contract, the law allows a rescission of the contract. Rescission means the contract is set aside. Misrepresentation occurs when a seller makes inaccurate statements about its product or fails to disclose pertinent information about its product that would affect someone’s decision to enter into the contract. To be a basis for rescission, the misrepresentation must have been one regarding a material fact. A material fact is the type of information that would affect someone’s decision to enter into the contract. Although misrepresentation can result simply because of inaccurate information, fraud is the knowing and intentional disclosure of false information or the knowing failure to disclose relevant information. Fraud has the same elements of proof as misrepresentation, with the added element of knowledge that the information given is false. Unconscionable Section 2c of Big Bank, Systems Inc. “In the event the conversion process is stopped, cancelled, or suspended by Big Bank, Big Bank agrees...
Words: 1377 - Pages: 6
