Scenario: Tom owned a house set on 1 acre of land that he wanted to sell when he retired in April, 2013. On April 1, 2012, Mary and Tom orally agreed that Mary would purchase Tom's house and 1 acre of land for $350,000 cash on April 15, 2013. In the meantime, Mary and Tom agreed that Tom would continue to own and live on the property. On April 15, 2013, Mary presented Tom with a cashier's check for $350,000 for the house and Tom transferred the deed to the house and land to Mary in her name. Mary and Tom properly filed all the documents necessary for the closing on the real estate sale.
Learning Activity 1:
Mary and Tom had also agreed previously that Tom could remain on the property following the closing of the sale on April 15, 2013 until April 17, 2013 to give him time to move out. On April 17, Tom refused to move out claiming that their oral agreement for sale of the property was invalid and unenforceable under the Statute of Frauds.
Was the sale originally subject to the Statute of Frauds and if so, for what reason(s) and why?
Is the contract for sale of the property valid so that Tom has to relinquish possession of the property? Why or why not?
Learning Activity 2:
Sometimes the best way to learn something is to teach/explain it to others and to provide examples; to that end, please complete the following for LA 2.
1. Write a brief scenario example of a unilateral contract. Write in paragraph format.
2. Explain why/how your example above is a unilateral contract. Write your explanation as if you were explaining and teaching the concepts to the class.
Learning Activity 3:
Scenario: Dave bought a power lawn mower manufactured by Ace, Inc. The mower was equipped with a removable plastic safety barrier to minimize the risk of injury from the mower's blades. Dave removed the safety barrier believing that it was unnecessary.
Dave asked his 16-year old son, Zak, to mow the lawn. Zak ‘s foot touched the mower blade as the safety barrier was removed; Zak was injured.
Dave wants to sue Ace, on behalf of his minor son, Zak, under strict product liability.
Under what specific product liability claims would you advise Dave to sue Ace and why?
Learning Activity 4:
Case A: Myra owns a house which she advertises for sale for $400,000. On May 1, Nic offers Myra $380,000 for the house. Myra does not reply immediately, but on May 5, Myra delivers to Nic at his office a form that includes additional terms for the sale of the house, but does not state a price.
At 9:00 a.m on May 6, Nic signs the form from Myra and gives it to Odell, his administrative assistant, with instructions to mail it to Myra. Odell does not mail the signed form on May 6. At 10:00 am, May 6, Myra calls Nic to say the deal is off.
May 7, Odell mails the form signed by Nic to Myra. When Myra receives the signed form from Nic, she refuses to sell the house to him. Nic files a lawsuit against her for breach of contract.
Which contract law applies to this case: UCC or common law?
What is the court likely to rule on the breach of contract claim? And why?
Case B: Ed, a business person is a friend of Fran, the owner of a candy story. Every day, Ed spends a few minutes in Fran's candy store, looking at the candy and usually buying one or two candy bars or other candy. One afternoon, Ed went in the store, looked at the candy, picked up a $1 candy bar, waved the candy bar at Fran without saying a word and left the store.
Is there an enforceable contract between Ed and Fran? Why or why not?
If there is a contract, what type of contract and how was it formed, specifically?
Learning Activity 5:
Scenario: Arnold is the CEO of Beta Corp. Arnold's responsibilities include making decisions on product development, marketing and other significant business directions. Arnold's position is subject to the approval and oversight by Beta's Board of Directors.
Carol is a Beta manager whose responsibilities include directing Beta's day to day hiring, firing, purchasing and selling.
Dave is a Beta salesperson whose daily activities are controlled by Carol, his supervisor.
Fred works from home to edit Beta's technical manuals on a contract- per-manual basis (he is paid for each manual he edits), and is not otherwise subject to Beta's control.
Identify each of the persons below as a principal, an agent, an agent-employee or an independent contractor - and explain your conclusion. For example, is Arnold a principal, agent- employee, or independent contractor and why? If you believe a person can hold more than one status, discuss/explain.
A. Arnold
B. Carol
C. Dave
D. Fred
Learning Activity 6:
Scenario: Brenda is purchasing agent for Commodities Corp. Dennis, a Commodities corporate officer, gave Brenda written authority to buy for Commodities Corporation as many computers and support devices as necessary. Dennis signed the written authority document. The next day, Dennis called Brenda and told her to buy only 50 notebook computers and nothing else.
Brenda went to E-Products, Inc. the next day, showed the written authority from Dennis to E-Products and entered into a written contract with E-Products to buy 60 notebook computers and a selection of printers and scanners to support the computers. E-Products promptly shipped the order to Commodities. Dennis claims Commodities is not liable to E-Products for the sale because, Dennis claims Brenda exceeded her agency authority and thus was not acting as a Commodities agent in the purchase with E-Products.
A. Is Commodities liable to E-Products under the sales contract for the computers, printers and scanners? Why or why not?
B. Is Brenda personally liable to E-Products to pay for the computers, printers and scanners? Why or why not?
C. Is Brenda liable to Commodities for exceeding her agency authority and thus liable for paying Commodities for the purchases? Why or why not?