...Written Assignment 1. a) From the information given a contract is necessary because according to the Statute of Fraud it states that sale of goods priced at five hundred dollars or more. This type of contract needs to be a writing or memorandum and signed. The essential terms of this writing are quantity, signed by party to be charged, name of parties, subject matter, and consideration. In this scenario there was a contract offer because Garvey had written offers for the Porpoise to Caldwell but we are not sure if Garvey met all the requirements of the Statute of Fraud law and then five days later he informed Caldwell that he is going to sell Porpoise to Montgomery someone totally different. Also it does not mention anywhere that Caldwell signed any contract and sent back to Garvey to prove his acceptance, so that is why I say there is no contract in this situation. b) According to the facts given a contract is necessary in this situation because according to the Statute of Fraud any goods priced at five hundred dollars or more needs to be a writing or memorandum and signed. This writing needs to include the quantity, signed by party being charged, name of parties, subject matter, and consideration. This applies to this situation because Priscilla is for $4200 which is way more than five hundred dollars. Garvey did offer a contract because he mailed a written offer but we are not sure if he completed all the requirements from the Statute of Fraud. However this is a...
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...Chapter 15—Contracts in Writing TRUE/FALSE 1. The parol evidence rule is an exclusionary rule of evidence. ANS: F PTS: 1 2. The parol evidence rule only applies to written contracts. ANS: T PTS: 1 3. The word “parol” literally means release. ANS: F PTS: 1 4. The parol evidence rule would allow evidence to be introduced to explain what the parties meant by the term "serrated." ANS: T PTS: 1 5. The parol evidence rule prohibits introduction of all evidence that would result in modifying written contracts. ANS: F PTS: 1 6. The statute of frauds has to do with fraud in the inducement of a contract. ANS: F PTS: 1 7. Most types of contracts are valid without being written. ANS: T PTS: 1 8. The statute of frauds generally requires that both parties sign the writing. ANS: F PTS: 1 9. A collateral promise is an undertaking to be primarily liable for the principal debtor's debt. ANS: F PTS: 1 10. Jim promises to marry Cynda if Cynda will buy him a new Ferrari for his birthday. This promise must be in writing to be enforceable. ANS: T PTS: 1 11. A part performance exception to the statute of frauds in many states requires both that the transferee has paid at least a portion of the purchase price and has either taken possession of the real estate or has started to make valuable improvements on it. ANS: T PTS: 1 12. A usage of trade is a practice or method of dealing, regularly observed and followed in a place...
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...raising the defense that the contract was not in writing? 5 10.7 Acceptance 6 Who wins? 6 11.4 Preexisting Duty 7 Can Gough recover? 7 13.1 Unilateral Mistake 8 Can the estate rescind the contract? 8 References 10 Assignment Week 1 We researched several cases this week where we discussed and answer several questions related with the chapters 9, 10, 11, and 13. All the questions were answers based in our best knowledge of the topics related to each case. 9.4 Business Ethics. "Lauren Vranich, a doctor practicing under the corporate name Family Health Care, P.C., entered into a written contract to hire Dennis Winkel. The contract provided for an annual salary, insurance benefits, and other employment benefits. Another doctor, Dr. Quan, also practiced with Dr. Vranich. About nine months later, when Dr. Quan left the practice, Vranich and Winkel entered into an oral modification of their written contract whereby Winkel was to receive a higher salary and a profit-sharing bonus. During the next year, Winkel received the increased salary. However, a disagreement arose, and Winkel sued to recover the profit-sharing bonus. Under Montana law, a written contract can be altered only in writing or by an executed oral agreement. Dr. Vranich argued that the contract could not be enforced because it was not in writing. Does Winkel receive the profit-sharing bonus? Did Dr. Vranich act ethically in raising the defense that the contract was not in writing? Winkel v. Family Health...
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...1) Had a contract for a 90 contract for exclusive negotiation agreement 2) Factors for Chou a. In favor i. Exclusive negotiation agreement ii. BTT’s email 3 days before that was subjected “Strat Deal” intent to sign iii. Follow up fax after deadline asking for draft b. Not in favor iv. Exclusive negotiation agreement stated that everything had to be in writing, so the negotiations and email could be viewed as part of the negotiation, no the actual contract. v. Draft done after the 90 days. 3) E-mail did impact my analysis as BTT did use terms that could be interpreted differently and put them at risk of entering a legal contract. 4) Statue of fraud is important in this as it requires specific contracts to be in writing. In this case, the statue of fraud provision is met if the writing includes quantity, signature of party, and language that would allow a reasonable person to conclude both parties intend to form a contract. The e-mail that stating the price, the language showing intent to contract, and the e-mail signature could satisfy the statue of fraud. 5) BTT could try to avoid the contract under doctrine of mistake, but they may not have a great case. They could try to state that the terms in the e-mail they sent three days before the 90 days were up were used in error. BTT could also argue that the contract was drafted after the 90 days, however Chou could argue the e-mail was a written...
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...1. Examine at least two circumstances in which this non-compete agreement would be unenforceable. Contracts of employment are generally given to prospective employees who have applied for a position or type of sub-contractor with a company. The employment contract will be the agreement between the company and employer to the prospective employees. The contract will spell out the rights to the employee, responsibilities, duties, conditions, and terms of that they will be governed. Contracts insure the company protects its business interest when the perspective employer agrees to the terms and conditions. The recipient of the lets them determine if the conditions and terms are acceptable or, need to have something added or taken away. In some cases even after the terms are agreed upon there are situations where a party of the signed contract needs to have the terms reexamined. If a upscale hotel called “Fabulous Hotel” hires a person as the head chef having a two-year contractual agreement but then, after the two years another hotel want to hire them. There is a paragraph in the original contract of the Fabulous Hotel the chef agreed to that states” The below-signed agrees not to work as a chef for another hotel in the same metropolitan area for a period of two years after leaving our employ.” This might sound definite to a degree that the chef is helpless. Contracts have to be examined carefully to understand how binding they may be especially, given certain circumstances...
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...period. The agreement stipulated that no distribution contract existed unless it was in writing. This paper will explain if Big Time Toymaker and Chou had an enforceable contract and any remedies they may use. Big Time Toymaker and Chou entered in a verbal contract when both parties negotiated the terms of BTT paying Chou $25,000 in exchange for exclusive negotiation rights for a 90-day period. The parties had an oral agreement at the conclusion of their meeting, and this converted into written contract when BTT sent the email confirming that all essential contract terms had been met. This email provides evidence of BTT’s objective intent to be bound by the terms of their agreement, and we know Chou intended to be bound since he is the one seeking to enforce their agreement. The facts that weigh in favor of Chou would be the e-mail that contains all the terms of the agreement. Technically it is in writing and that was the only clause in their verbal arrangement. The facts that weigh against Chou would be that the e-mailed was not signed by either of the parties. The fact that both parties communicated by e-mail did have an impact on the analysis. The verbal agreement made between both parties stated it was not a contract unless it was in writing. The verbal agreement did not specify if an e-mail was acceptable as in writing or not. The statute of frauds plays a part in this scenario as the contract must be in writing. The email...
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...Theory to Practice Normally the contract would have been formed when before the expiration of the 90 day period the parties reached an oral distribution agreement at the meeting. However, the exclusive negotiation agreement stipulated that no distribution contract existed unless it was in writing. The contract was formed when the BTT manager sent the "Strat Deal" to Chou. Since the e-mail contained all the key terms of the distribution agreement including price, time frames, and obligation of both parties, the e-mail complied with the requirement that the contract should be in writing. When the BTT manager sent the e-mail, the contract was formed (Andrews. N, 2011). There is an objective manifestation of intent to contract. The first manifestation of the intent to contract is the payment by BTT of $25,000 in exchange for exclusive negotiation rights for a 90-day period. The second manifestation of the intent to contract is the meeting between BTT managers and Chou where they reached an oral distribution agreement. Third the sending of e-mail drafted by BTT manager shows the intent to contract. Fourth, the stating of all the terms that had been agreed upon in the BTT manager e-mail shows the intent to contract (Barnett. R, 2010). According to the contract law, the offer is a manifestation of intent. During the negotiations an offer was made to Chou. This was the manifestation of intent to contract. The second manifestation was the valid acceptance of the offer during the meeting...
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...Contracts I Outline – go through mind map list the 4 big issues, each para under the issues can include subissues, can say it might not be an issue later ------------------------------------------------- Bern’s Model: TMJM ------------------------------------------------- Tsedeq- righteous moral standard ------------------------------------------------- Misphat- applied even handedly ------------------------------------------------- Jurisdiction- by one authority ------------------------------------------------- cannot force to love ------------------------------------------------- civil government has jurisdiction over evil-doer ------------------------------------------------- can use Israel example ------------------------------------------------- Meshar- producing evenness in outcomes in like cases ------------------------------------------------- "Together the three express the thought of the evenhanded and impartial application (mishpat) of a righteous moral standard (tseden) producing an evenness or equality (meshar) in outcomes in like cases." ------------------------------------------------- God has jurisdiction over all as creator. ------------------------------------------------- Man is made in the image of God and can contract based on language and promise ability. ------------------------------------------------- A person has reason to expect that a person made in the image of God should keep his promises. I. Bases for Enforcing Promises-Theories...
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...entered into a written employment contract to hire Dennis Winkel. The contract provided for an annual salary, insurance benefits, and other employment benefits. Another doctor, Dr. Quan, also practiced with Dr. Vranich. About nine months later, when Dr. Quan left the practice, Vranich and Winkel entered into an oral modification of their written contract whereby Winkel was to receive a higher salary and a profit-sharing bonus. During the next year, Winkel received the increased salary. However, a disagreement arose, and Winkel sued to recover the profit-sharing bonus. Under Montana law, a written contract can be altered only in writing or by an executed oral agreement. Dr. Vranich argued that the contract could not be enforced because it was not in writing. Does Winkel receive the profit-sharing bonus? Did Dr. Vranich act ethically in raising the defense that the contract was not in writing? Winkel v. Family Health Care, P.C., 205 Mont. 40, 668 P.2d 208, Web 1983 Mont. Lexis 785 (Supreme Court of Montana) (Cheeseman 2010, p. 158) Cheeseman, H. (2010). Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues. Upper Saddle River: Pearson Prentice Hall. Issue Under Montana law, a written contract can be modified only in writing or if an oral agreement had been executed. Was the oral agreement between Vranich and Winkel executed? Is the contract unenforceable? Did Vranich...
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...following through with their agreement? Is the contract irrelevant because it was not reduced to UCC Statute of Frauds? According to Section 2 of the UCC Statute of Frauds, Except as otherwise provided in this section a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker. A writing is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quantity of goods shown in such writing. In reference to the above paragraph, a contract for the purchase of 100 watches was drafted by Randy Rolek and sent to Wally of “Windy City Watches,” In which Wally signed making the contract complete. Wally states that he should not be held accountable, but UCC Statute of Frauds states specifically, “$500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker.” Considering that the contract signed was for the purchase of 100 watches at $25 per watch, this puts the total due at $2500, making the contract valid. In...
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...for the promise; and (2) usually, there must be a bargained-for exchange.” (Clarkson, Miller, & Cross, 2012, p. 223) In a bilateral contract it consists of a promise in return for a promise. In a unilateral contract there is a promise in return for performance. In the case stated above past consideration would be the legal standard. In past consideration there is “no consideration”. Because the father promised payment for an action that already occurred, this promise is unenforceable. There was no bargained-for exchange between the two parties prior to their taking the young man in. While the father may be morally bound to his word, if the couple took him to court, the courts would not remand him to pay the $500 to the couple. Had the son or father offered to pay them prior to the couple providing him food and shelter then there would have been legal ground to stand on. 13-3 - Capacity A widowed seventy-five-year-old woman named Joanne survives on a fixed budget and has recently become forgetful. Her family fears she has Alzheimer’s but no doctor has diagnosed her with this illness and no court has ruled on her legal competence. Joanne goes to a piano store one day and purchases a piano on installment. The next day when it is delivered, she tells the delivery person she has no recollection of making such a purchase. Is this contract void, voidable, or valid? A...
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...have a contract the moment that Chou and Big Time Toymaker (BTT) entered the exclusive negotiation agreement. A contract is considered perfected the moment the parties reached an agreement which signifies their consent, the object of the contract and the consideration or price. It bears to stress that the first element to test whether a contract has been perfected is that there must be intention on the parties to be legally bound. The second element to test the perfection of a contract is when the parties have reached a reasonable agreement without the need for any further requirement. When these elements are present, it is deemed that a contract has been concluded (Jansen & Zimmermann, 2011, p. 633). In this given case, when Chou agreed to grant exclusive negotiation rights for a 90-day period to BTT to distribute the new strategy game named “Strat” and after receiving $25,000 from BTT, such agreement is considered perfected. Such agreement allowed BTT to become the sole distributor of Strat by virtue of such agreement with Chou. Although the exclusive negotiation agreement stated that there can be no distribution contract between the parties unless it was reduced into writing, the parties reached an oral distribution agreement before the lapse of the 90-day period. To make a contract binding between the parties, it is not necessary for it to be concluded or evidenced in writing. It may not be subjected to a requirement as it its form, provided that such contract can may...
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...The law of contract is the foundation upon which the superstructure of modern business is built. It is common knowledge that in business transactions quite often promises are made at one time and the performance follows later. Explaining the object of the law Sir William Anson observes:”the law of contract is intended to ensure that what a man has been promised to him shall be performed” DEFINITIONS • A contract is an agreement made between two or more parties which the law will enforce • Pollock: “Every agreement and promise enforceable at law is a contract.” • Salmond: “A contract is an agreement creating and defining obligations between the parties.” AGREEMENT • An agreement is defined as “every promise and every set of promises, forming consideration for each other.” • A proposal when accepted becomes a promise. Agreement = Offer + Acceptance INDIAN CONTRACT ACT 1872 The law of contract in India is contained in the Indian contract act, 1872. According to section 2(h) of Indian contract act: an agreement enforceable by law is a contract” ESSENTIAL ELEMENTS OF A VALID CONTRACT 1. OFFER AND ACCEPTANCE: When one person signifies to another his willingness to do or abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence he is said to make a proposal. The first step towards creating a contract is that one person shall signify or make a proposal...
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...Toymaker Week Four 1. At what point, if ever, did the parties have a contract? From reading the scenario, I do not think the two parties involved ever had a contract. In the scenario, the parties reached an agreement only three days before the end of a 90-day deadline set in the original negotiation contract. In the original negotiation contract, it states that there would be no distribution contract unless it was in writing. When the BTT manager sent the e-mail to Chou, he mentioned the terms of a distribution agreement, but it does not make the email a contract as neither party signed it. Only an oral agreement was reached. Without a legally binding draft and the signature of both parties present, not contract existed 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? BTT had paid Chou $25,000 for the exclusive negotiation rights to his board game, and this factor would lead Chou to believe they were serious about coming to an agreement on a distribution contract. This is a fact that would weigh in favor of Chou. However, both parties only made an oral agreement, and not a written contract to show this fact. Since the contract was not drafted within the original 90-day period, the new management was not obligated to distribute the board game, and therefore, had every right to turn Chou away instead of honoring the oral contract. 3. Does the fact that the parties were communicating by e-mail have...
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...Contracts 613 MIDTERM EXAMINATION Contracts 613 Issue: Valid Contract Betty v. Art Formation For there to be a contract, there must be an offer, acceptance and consideration. Offer An offer the present outward manifestation of intent to be bound by contractual agreement requiring definite and certain terms and is communicated to the offeree. When Betty asked Art on what terms he would build a barn on her property was a present outward manifestation. Here Art responded that he had never built a barn for hire, he would charge $100 per square foot about $10 more than expected cost was intent to be bound by contractual agreement. When Art told Betty that he could build a 50 x 50 barn Betty said, "OK, if you guarantee January 1, 2005 completion” by her own words that she wanted to be bound by contractual agreement, Art agreed to the contract. Hence, it would be deemed that this present outward manifestation, because in the parties own words indicates their intent to be bound by contractual agreement for the build of Betty barn. Art will counter that their agreement was nothing more than a preliminary negotiations because the price increase there was a new agreement Betty’s initial inquiry was for $100 per square due to the increase in lumber he had to increase the price by $30 per square feet. Further, he had contracted to sale his farm and would not be able to build the barn. However, since one barn would build (quantity), 50’ by 50’ (size), to be ...
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