Implied in Fact Contract Case Problem
LAW001 Business Law 1
Week 1 Assignment
Implied in Fact Contract Case Problem
This assignment was locked Sep 26, 2016 at 11:59pm.
Case Problems (Links to an external site.)
Law 1 – Business Law – Contracts
Case Problems
Chapter 11 – Implied Contract. – (Chapter 11 Outline (Links to an external site.))
A. Read the case Wrench v. Taco Bell (Links to an external site.).
B. Read this article (Links to an external site.) to better understand the above fairly difficult case.
C. Answer the following questions. Check your grammar and spelling.
1. Define an implied in fact contract.
2. When does a copyright right claim not preempt state law?
3. Explain the following statement: “The gist of appellants’ state law implied-in-fact contract claim is breach of an actual promise to pay for appellants’ creative work. It is not the use of the work alone but the failure to pay for it that violates the contract and gives rise to the right to recover damages.”
4. Who won the case? Your response should provide the legal reasoning and application to the facts.
5. Explain the following statement: Wrench’s ideas were not novel because they “merely combined themes and executions that had been used many times in a variety of commercials for different products.”
LAW001 Business Law 1
Week 2 Assignment
Acceptance Case Problem
This assignment was locked Sep 18, 2016 at 11:59pm.
Case Problems (Links to an external site.)
Law 1 – Business Law – Contracts
Chapter 12 – Acceptance
A. Read the case Olsen v Johnston (Links to an external site.) and review the Chapter 12 Outline (Links to an external site.).
B. Explain the following statements below in your own words. You provide a total of 4 separate responses.
“To form a legally enforceable contract, there must be (1) identifiable parties capable of contracting; (2) their consent; (3) a lawful object; and (4) a sufficient cause or consideration.”
“Johnston’s conduct also did not make clear that the offer had prescribed an exclusive mode of acceptance. Johnston personally sent the letter that contained her offer to Olsen. Johnston did not have Townsend send the letter on her behalf. Johnston failed to convey objectively an unwillingness to communicate directly with Olsen.”
We consider only the offeror’s objective manifestations of consent as expressed by words and conduct. Bitterroot Int’l Sys. An offer must exclude clearly and definitively all other modes of acceptance to create a condition precedent to acceptance.”
“Moreover, the parties’ exchanged letters satisfied the statute of frauds. A contract for the sale of real property must be memorialized by a written note or memorandum subscribed by the party to be charged. Section 28-2-903, MCA. The note or memorandum does not have to be in any particular form and may consist of several writings.”
LAW001 Business Law 1
Week 3 Assignment
General Release
Create a contract using the template attached. Make sure that you include the waiver of a real liability.
GENERAL RELEASE
1. ___________________, Releasor, voluntarily and knowingly execute this release with the express intention of eliminating Releasee’s liabilities and obligations as described below.
2. Releasor hereby releases _______________________, Releasee, from all claims, known or unknown that have arisen or may arise from the following occurrence:
(state type of liability being released here) __________________________________________________
_____________________________________________________________________________________
3. In exchange for granting this release Releasor has received the following consideration:
$ __________________________
4. In executing this release Releasor additionally intends to bind his or her spouse, heirs, legal representatives, assigns, and anyone else claiming under him or her. Releasor has not assigned any claim covered by this release to any other party. Releasor also intends that this release apply to heirs, personal representatives, assigns, insurers and successors of Releasee as well as to the Releasee.
5. This release was executed on (date) ___________________
at (location) _____________________________________
Releasor’s Signature ____________________ Releasee’s Signature _____________________
Address ______________________________ Address ______________________________
Releasor’s Spouse’s Signature _________________________________
Civil Code Section 1542
A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. Witkin summary 9th edition contracts section 658, 894, 895, 897.
LAW001 Business Law 1
Week 4 Assignment
Past Consideration Case Problem
Law 1 – Business Law – Contracts
Chapter 13 – Past Consideration
A. Read the case Access Organics v HernandezLinks to an external site..
B. Answer the following questions in your own words.
Explain the following: “The non-compete agreement provided in relevant part: For good consideration and as an inducement for Access Organics (the Company) to employ Andy Hernandez, the undersigned Employee hereby agrees not to directly or indirectly compete with the business of the Company and it successors and assigns during the period of employment and for a period of two years following termination of employment…”
Explain the following: “Section 28-2-801, MCA, provides that “[a]ny benefit conferred or agreed to be conferred upon the promisor by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered or agreed to be suffered by such person, other than such as he is at the time of consent lawfully bound to suffer, as an inducement to the promisor is a good consideration for a promise.”
Explain the following: “Consideration exists if the employee enters into the non-compete agreement at the time of hiring. During pre-employment negotiations, the employee and the employer engage in a bargained-for exchange: the employer obtains the desired non-compete agreement, and in return, the employee receives employment.”
Explain the following: “However, Hernandez signed the agreement more than four months after accepting his initial employment offer from Access Organics. The record clearly shows that the agreement was not signed as part of Access Organics’s pre-employment negotiations with Hernandez.”
Explain the following: “A non-compete agreement entered into after employment will be enforced if it is supported by independent consideration . . . . Independent, additional, consideration is required for the valid formation of a modification or subsequent agreement.”
Explain the following: “We conclude that the District Court erred by finding that the continuation of Defendants’ employment, and therefore, income” sufficed as consideration. We hold that Access Organics failed to meet its burden of proof by showing that the agreement was supported by good consideration.”
Explain who won the case (actual name).
LAW001 Business Law 1
Week 5 Assignment
Capacity Case Problem
This assignment was locked Oct 30, 2016 at 11:59pm.
A. Read the case Nationwide Mutual v. Wood (Links to an external site.).
B. Carefully explain in your own words (paraphrase and do not copy from the case).
1. Explain – “Under Alabama law, is an insurance company bound to a settlement agreement negotiated on behalf of an injured minor, if that minor dies before the scheduling of a pro ami hearing which was intended by both sides to obtain approval of the settlement?”
2. Explain – “Under the Alabama survival statute, § 6-5-462, Ala.Code 1975, an unfiled claim sounding in tort will not survive the death of the person with the claim, Malcolm v. King, 686 So.2d 231 (Ala.1996) (Links to an external site.); Georgia Cas. & Sur. Co. v. White, 582 So.2d 487 (Ala.1991) (Links to an external site.). A claim on a contract, on the other hand, survives in favor of a decedent’s personal representative, regardless of whether the decedent had filed an action before his death, McCulley v. SouthTrust Bank of Baldwin County, 575 So.2d 1106 (Ala. (Links to an external site.)985 (Links to an external site.)*985 (Links to an external site.) 1991) (Links to an external site.); Benefield v. Aquaslide `N’ Dive Corp.,406 So.2d 873 (Ala.1981 (Links to an external site.)).
(Links to an external site.)3. Explain – “Thus, it is undisputed that any potential tort claims D.V.G. held were extinguished when she died; the issue before us is whether she held any contractual claims at her death that are now enforceable by the administratrix of her estate, her mother Barbara Walker Wood. Wood argues that the settlement agreed to by D.V.G.’s attorney Stan Brobston and Nationwide and State Farm is a valid contract that Wood can now enforce.”
4. Explain – “Nationwide and State Farm argue that the settlement agreement was an executory contract that would not be complete and binding until it was approved by the Jefferson Circuit Court following a pro ami hearing. Alternatively, they argue that, even if the settlement agreement was a binding and enforceable contract, the pro ami hearing was a condition precedent to the performance of the contract and that hearing is now impossible as a result of the death of D.V.G.; consequently, they argue, their duty to perform under the contract is discharged”.
5. Explain – “[i]t is well settled by the authorities that infants are not liable on any of their contracts, except for necessaries. With the exception, all other contracts of infants, whether executory or executed, may be avoided or ratified at the election of the infant.'” H & S Homes, L.L.C. v. McDonald, 823 So.2d 627, 630 (Ala.2001) (Links to an external site.)(quoting Harris v. Raughton, 37 Ala.App. 648, 649, 73 So.2d 921, 922 (1954) (Links to an external site.)(emphasis added)). See also Davis v. Turner, 337 So.2d 355, 361 (Ala.Civ.App.1976) (Links to an external site.) (stating that contracts entered into by minors are “not void, but voidable only” and “not totally ineffectual, [but] merely unenforceable if later repudiated”). Thus, at the time the settlement was agreed to, a contract was formed that was binding upon Nationwide and State Farm but voidable at D.V.G.’s election.”
6. Explain – “Nationwide and State Farm nevertheless argue that the fact that no hearing 986 (Links to an external site.)*986 (Links to an external site.)was held to allow a court to approve the settlement — a hearing that all parties agree was required to take place — nullifies the agreed-upon settlement and releases them from their obligations under that settlement either because the contract was mutually executory or because the contemplated hearing was a condition precedent to their performance.”
7. Explain – ” It is established law that a decedent’s contract claims survive his or her death, and, because we have 987 (Links to an external site.)*987 (Links to an external site.)held that the settlement agreement was a contract voidable at D.V.G.’s election, we can think of no reason why a trial court could not make a determination of the fairness of that contract even after the minor’s death. For these reasons, we answer the certified question in the affirmative.”
8. Who won and why – state name of actual party who won (not appellant, etc.) and why
LAW001 Business Law 1
Week 6 Assignment
Mistakes/Fraud Case problem
Chapter 15 – Mistakes, Fraud and Voluntary Consent
A Read the case Desgro v. Pack CaseLinks to an external site.
Links to an external site.
B. Study the Whiteboard.Links to an external site.
watch Prof J videoLinks to an external site.
C. Carefully explain (define and provide the reasoning) in your own words (paraphrase and do not copy from the case) the following:
1. “The trial court granted summary judgment to defendant, finding that the contractual limitation period was reasonable and enforceable. The trial court stated that plaintiff ‘had plenty of time to find any deficiency’ because he had been living in the home for at least ten months when the contractual limitations period expired.”
2. “Courts may determine the intention of the parties by a fair construction of the terms and provisions of the contract, by the subject matter to which it has reference, by the circumstances of the particular transaction giving rise to the question, and by the construction placed on the agreement by the parties in carrying out its terms.”
3. “Accordingly, we do not need to examine the contract’s provisions to determine their reasonableness because the agreement at issue is not a contract of adhesion.”
4. “Home inspections have been deemed by this court to be a ‘service of great importance to the public,’ and the exculpatory clauses contained in home inspection agreements have been determined to affect the public interest as well.” Carey v. Merritt, 148 S.W.3d 912, 918 (Tenn. Ct. App. 2004)Links to an external site.; Russell v. Bray, 116 S.W.3d 1, 8 (Tenn. Ct. App. 2003)Links to an external site..
5. “Tennessee has long-recognized the well-established general rule that in the absence of a prohibitory statute, a contract provision is valid which limits the time for bringing suit, if a reasonable period of time is provided, and that the general statutes of limitations are not prohibitory of such contractual provisions.”
6. “In this case, the language plaintiff complains of is not an unenforceable exculpatory clause.The language is a contractual limitations period, which our court has repeatedly held to be enforceable so long as the period is reasonable. The provision does not exculpate defendant from most or all liability, but rather limits the time period within which plaintiff can file suit against defendant. Thus, plaintiff’s argument in this regard is without merit.”
LAW001 Business Law 1
Week 7 Assignment
Statute of Frauds Case Problem
This assignment was locked Oct 16, 2016 at 11:59pm.
Case ProblemsLinks to an external site.
Law 1 – Business Law – Contracts
Chapter 16 The Writing Requirement
1. Read the case Wood Care Centers v. Evangel TempleLinks to an external site.
2. Watch the
youtube video on parole evidenceLinks to an external site.
in contracts
3. Look at the Team Presentation PPTLinks to an external site.
4. Study the WhiteboardLinks to an external site. and
ProfJ videoLinks to an external site.
5. Carefully explain in your own words (paraphrase and do not copy from the case) the following words and statements in the caseLinks to an external site.
LAW001 Business Law 1
Week 7 Assignment 2
Secured Promissory Note
Please provide a completed Secured Promissory Note.Links to an external site. Note that the promise to pay must be secured by a piece of collateral – normally this is a deed on your real property. Please make sure that you state the piece of collateral, and its location. Here is a sample of a secured promissoryLinks to an external site. note for your review.
Please also remove all blanks and instructions on the note, so it is a complete legal document.
LAW001 Business Law 1
Week 13 Assignment 1
Performance and Breach of Sales Agreements
Chapter 22 – Performance and Breach of Sales and Lease Agreements
A. Read the case Flint Hills Resources v Jag EnergyLinks to an external site..
B. Study the WhiteboardLinks to an external site. and
ProfJ videoLinks to an external site.
C. Carefully explain in your own words (paraphrase and do not copy from the case) the following statements:
“In the event of any adverse claim, lien, dispute or lack of information affecting or concerning title to the property or to the crude oil proceeds from lands described in this agreement, Buyer may withhold payment for the crude oil until the claim, lien, dispute or lack of information is settled or resolved, without liability for interest. If requested, Seller agrees to furnish evidence of title satisfactory to Buyer.”
“The district court determined that Flint Hills breached the parties’ contract by unreasonably suspending its own performance. For the following reasons, we reverse the district court and render judgment in favor of Flint Hills.”
“The district court interpreted this language to create a limited right to withhold payment — one available where a third-party brings an adverse claim of ownership or where there is objective evidence of bad title.”
“Under the plain terms of the agreement, Flint Hills could suspend payment upon any “dispute or lack of information affecting” title. This right to suspend payment based on a lack of information was not conditioned on the presence of an adverse claim, verifiable proof of theft, or objective evidence of wrongdoing.”
“The district court improperly imposed extra-contractual requirements of commercial reasonableness and verifiable proof on Flint Hills. Thus, the district court committed clear error in determining that Flint Hills breached the contract.”
Explain who won and provide the main legal reasoning.
LAW001 Business Law 1
Week 13 Assignment 2
Warranties Case Problem
Chapter 23 – Warranties
A. Read the case Rothing v Kallestad (Links to an external site.).
B. Study the Whiteboard (Links to an external site.) and
ProfJ video (Links to an external site.)
C. Carefully explain in your own words (paraphrase and do not copy from the case) the following statements.
“In the instant case, the Rothings’ purchase of hay from Kallestad was a transaction in goods, thus it may be governed by Montana’s Uniform Commercial Code (UCC) pertaining to sales if it meets the other requirements of Title 30, Chapter 2, Montana Code Annotated (1999).”
“In addition to the requirement that the transaction consist of the sale of ‘goods,’ the seller must meet the definition of a ‘merchant.’ A ‘merchant’ under the UCC ‘means a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction . . . .’ Section 30-2-104(1), MCA. Whether or not a person qualifies as a merchant under the UCC is a mixed question of law and fact. Smith, 291 Mont. at 430, 968 P.2d at 726 (Links to an external site.) (citing Dawkins & Co. v. L & L Planting Co., 602 So. 2d 838, 843 (Miss. 1992) (Links to an external site.)).”
“Here, Kallestad would have breached the Implied Warranty of Merchantability if the trial court determines that the goods were not “fit for the ordinary purposes for which such goods are used,” i.e., as feed for livestock.”
” Prior to the advent of the UCC, the common law concept of ‘implied warranty’ developed in cases of food stuffs sold for immediate human consumption where “a warranty of soundness or wholesomeness will be implied.” Larson v. Farmers Warehouse Co., 297 P. 753, 754 (Wash. 1931) (Links to an external site.). Courts extended the concept of implied warranty to products to be fed to livestock, but initially limited its application to ‘processed and packaged’ food. See, e.g., Midwest Game Co. v. M.F.A. Milling Co., 320 S.W.2d 547, 550 (Mo. 1959) (Links to an external site.) (attaching implied warranty where the animal food ‘is not in its raw state but has been processed and packaged by the manufacturer’).”
“Furthermore, Article 2-715(2)(b), does not contain a foreseeability requirement, thus a seller ‘is liable for injury to person or property even if the seller did not know of or have reason to know of the buyer’s intended use.'”
Explain who won the case, and provide the main legal reasoning.
LAW001 Business Law 1
Week 14 Assignment 1
Breach of Contract
Review the Breach of Contract (Links to an external site.) and review the elements for breach of contract (Links to an external site.)
Copy and paste the Breach of Contract (Links to an external site.) (do not try to edit the “wiki” page) into your word processor, then “word process” and change all of the essential terms of the contract, i.e. dates, amounts, name of attorney, names of parties, etc.
You are using the above breach of contract form provided as a “template”. It is a previous client’s contract, and you use the form, but you change all of the details to fit your own work. This type of work is often given to paralegals in a law office – to take an existing form and then to modify it to fit your client’s facts and information. Unlike the previous contracts you worked on, there are no blanks to fill in.
Once you have completed your “word processing and editing” then submit it below.
LAW001 Business Law 1
Week 14 Assignment 2
Computer Software Contract
1. Review this (Links to an external site.) e-book.
2. Use the Computer Software Contract (Links to an external site.)to create your own contract.
Note: Remember that “compensation” is an essential term in any contract, so please provide adequate “compensation” for the performance of this contract.
LAW001 Business Law 1
Week 15 Assignment
Negotiable Instruments Case Problem
Chapter 25 – Negotiable Instruments
A. Read the case GMAC v Honest Air Conditioning & Heating (Links to an external site.).
B. Study the Whiteboard (Links to an external site.) and
ProfJ video (Links to an external site.)
C. Carefully explain in your own words (paraphrase and do not copy from the case) the following statements below:
“In contrast, the RISC in this case creates a series of obligations upon the vehicle purchaser, requiring the buyer ‘to buy the vehicle on credit under the agreement’; ‘to pay the creditor the amount financed and finance charge according to the payment schedule’; and to give ‘the creditor a security interest” in the vehicle.'”
“Although Honest Air and Mr. Babcock are not entitled to relief based upon section 673.6051, we must determine whether relief due to the alleged impairment of collateral is otherwise available.”
“It is apparent that in the commercial setting in which it operates, GMAC of necessity bears some risk of loss.”
“This court’s function is not to evaluate the economic prudence of GMAC’s policies.”
“Among other things, the debtor agrees not to remove the vehicle from the United States and to reimburse advances made by the creditor in payment of repair or storage bills, and the creditor agrees to dispose of the collateral in certain ways following repossession.”
Provide the name of the party who won the case as well as the main legal reasoning of the court.
LAW001 Business Law 1
Week 16 Assignment
Agency Case Problem
Chapter 32 – Agency
A. Read the case Santiago v Phoenix Newspapers. (Links to an external site.)
B. Study the Whiteboard (Links to an external site.) and
ProfJ video (Links to an external site.)
C. Carefully explain in your own words the following statements below:
The court of appeals agreed, stating that “[p]arties have a perfect right, in their 507 (Links to an external site.)*507 (Links to an external site.) dealings with each other, to establish the independent contractor status in order to avoid the relationship of employer-employee, and it is clear from the undisputed facts that there was no employer-employee relationship created between PNI and Frausto.” Santiago v. Phoenix Newspapers, Inc., 162 Ariz. 86, 90, 781 P.2d 63, 67 (1988) (Links to an external site.). Santiago seeks review of this ruling.
The Restatement lists several additional factors, none of which is dispositive, in determining whether one acting for another is a servant or an independent contractor. We now review those factors, along with the cases considering them, for evidence of an employer-employee relationship which could preclude the entry of summary judgment.
Contract language does not determine the relationship of the parties, rather the “objective nature of the relationship, [is] determined upon an analysis of the totality of the facts and circumstances of each case.”
The fundamental criterion is the extent of control the principal exercises or may exercise over the agent. Central Management v. Industrial Commission, 162 Ariz. 187, 190, 781 P.2d 1374, 1377 (App. 1989) (Links to an external site.); Hamilton v. Family Record Plan, Inc., 71 Ill. App.2d 39, 47, 217 N.E.2d 113, 117 (1966) (Links to an external site.); see also Greening v. Gazette Printing Co., 108 Mont. 158, 165, 88 P.2d 862, 864 (1939) (Links to an external site.) (contract terms between carrier and printer not binding on third party; “[i]f one is injured by the servant of another, it 509 (Links to an external site.)*509 (Links to an external site.) is immaterial to him what the terms of the agreement between employer and employee might be. The liability must come from the fact that the employer exercises control over the actions of the person in his employment.”)
A strong indication of control is an employer’s power to give specific instructions 510 (Links to an external site.)*510 (Links to an external site.)with the expectation that they will be followed.
The jury is more likely to find a master-servant relationship where the work does not require the services of one highly educated or skilled.
LAW001 Business Law 1
Week 16 Assignment
“Invent a Product”
Read the instructions below.
Then, upload your completed project in Word only. No other formats will be accepted or graded.
Final Contract Project
Invent a product. The product is one you will market for profit. Assume the product has been developed and created and is ready for distribution. Do not concern yourself whether the product can reasonably be realized. Read the rubric (Links to an external site.) on how your final contract is graded.
Draft a contract for the sale of the product to a retail establishment. The retailer could be a department store, restaurant, hardware store, etc.
The contract should contain the necessary elements of a contract pursuant to the UCC (Links to an external site.). The Contract should satisfy the requirements of California Law. The contract should include specifics on terms such as description, price, quantity, shipping or delivery, payments, etc. You may use other sources beyond your textbook. Do not use terms you do not understand. Do not just “copy and paste” a contract you find on the internet. Make this contract yours.
Additional Information (Links to an external site.) to consider in Drafting your Final Contract Project.
Also, you are required to add at least seven (7) “boilerplate” contract provisions (Links to an external site.), along with an arbitration and attorneys fees clause.
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