Exam 4: Enforceability of Contractual Rights

James owed Christie $2,500.She asked him to make the payments to her friend,Agatha,and they drew up and signed a contract to that effect.After he had made a couple of payments,Christie died,and James told Agatha he would not give her any more money.There is $2,300 still outstanding. A)Explain why Agatha cannot simply sue James for breach of contract to get the balance of the money. B)Identify the equitable remedy available to Agatha,and describe how it would operate to help her here. C)What should Christie have done to ensure that Agatha could enforce the contract if Christie was not there to do so?

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob. -If Bobfails to give John notice of the assignment,John may lawfully make payment to Stan.

On March 6,the Limestone Student Society entered into a contract with the Stumbling Stones,a rock group,to give a performance at the Limestone U Students' Union on March 31.On March 29,the Stumbling Stones fell ill with the flu,and were unable to travel to Limestone City.Another rock group was contacted by the Stumbling Stones to appear in their place,and arrived at the Student' Union in time to perform. -The contract,by its nature,is not subject to vicarious performance.

Sarah is suing her lawyer,Tom Takeitall,for the return of property worth $20,000 that she had given him.She had signed a properly sealed document making the gift to him.She says she knew what she was signing but felt overwhelmed by his manner. -Under these circumstances it is up to Tom Takeitall to prove that he did not unduly influence Sarah,if she simply alleges that he did.

While Connor was visiting his physician,he mentioned to him that he wished to sell his expensive sailboat.The physician expressed an interest in buying the boat,and offered to pay Conner $10,000 for it.Conner had intended to advertise the boat for $12,000 in the local newspaper,but agreed to sell it to the physician for $10,000.Some weeks after the boat had been sold,Conner wished to avoid the contract. -In this case,there is a rebuttable presumption of undue influence,because the purchaser was Conner's physician.

Innocent misrepresentation renders a contract voidable at the option of either party.

In the presence of several witnesses,Quentin verbally agreed to purchase Trevor's farm for $175,000.The next day,Trevor changed his mind,and refused to sell the farm to Quentin.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,Quentin sued Trevor for breach of contract,and for a decree of specific performance to compel Trevor to sell him the farm. -The verbal agreement is void.

Karen,a marketing consultant,entered into an agreement with Better Life Consumer Products Co.whereby she agreed to assist in test marketing its products for a year.The verbal agreement was made on June 12,and Karen was to begin work for the firm on November 1 that year.The contract was to terminate on November 1 of the following year.Better Life offered to prepare a formal agreement for her signature that would be available on her first day of work.However,the August prior to her starting work,Better Life was forced drop plans to test market its intended products as a result of a patent infringement suit.Better Life notified Karen that there was no need for her services. Discuss Karen's rights (if any)and Better Life's position at law.

Steve orally agrees,at a family reunion picnic,to buy Bob's farm for $250,000,and all the terms of the agreement are settled.Bob agrees to let Steve come onto the property before the closing date so that Steve can renovate the farmhouse kitchen and build a new barn before he takes over formally.By the time Bob tells Steve that he has changed his mind and that he will not be completing the transaction on the closing date,Steve has spent $40,000 on the property.

For there to be punitive damages,there must have been fraudulent misrepresentation.

In the presence of several witnesses,Quentin verbally agreed to purchase Trevor's farm for $175,000.The next day,Trevor changed his mind,and refused to sell the farm to Quentin.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,Quentin sued Trevor for breach of contract,and for a decree of specific performance to compel Trevor to sell him the farm. -The verbal agreement is unenforceable.

Sara purchased an old glass vase that Rina represented as an antique made by a famous Italian glassmaker in the 17th century.As proof of its authenticity,Rina produced an old paper with a rough sketch of the vase on it,along with some writing,and what appeared to be the glassmaker's name.Sara later sold the vase to Lise,after telling Lise the story of the vase as told to her by Rina.After Lise purchased the vase,she discovered it to be a reproduction of the original,and of very little value. -Lise may take action against Sara to have the contract rescinded on the basis of fraudulent misrepresentation by Sara.

Hughes and Martin discussed the possibility of Martin entering the employ of Hughes as the general manager of Hughes's firm.A written contract was prepared and signed by the parties on December 1,1989.The contract provided for a salary of $3,000 per month,and specified that the contract was to run for a period of two years from January 2,1990.On December 28,1989,Hughes notified Martin that he was cancelling the contract.Martin sued Hughes immediately. -When Hughes cancelled the contract,Martin was released from his obligation to perform.

Hughes and Martin discussed the possibility of Martin entering the employ of Hughes as the general manager of Hughes's firm.A written contract was prepared and signed by the parties on December 1,1989.The contract provided for a salary of $3,000 per month,and specified that the contract was to run for a period of two years from January 2,1990.On December 28,1989,Hughes notified Martin that he was cancelling the contract.Martin sued Hughes immediately. -The Statute of Frauds would render the contract illegal if it was not in writing and signed.

In the presence of several witnesses,Quentin verbally agreed to purchase Trevor's farm for $175,000.The next day,Trevor changed his mind,and refused to sell the farm to Quentin.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,Quentin sued Trevor for breach of contract,and for a decree of specific performance to compel Trevor to sell him the farm. -Trevor may successfully plead the Statute of Frauds as a defence.

Hughes and Martin discussed the possibility of Martin entering the employ of Hughes as the general manager of Hughes's firm.A written contract was prepared and signed by the parties on December 1,1989.The contract provided for a salary of $3,000 per month,and specified that the contract was to run for a period of two years from January 2,1990.On December 28,1989,Hughes notified Martin that he was cancelling the contract.Martin sued Hughes immediately. -Martin may sue Hughes for breach of the contract.

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting. -The verbal agreement is valid and enforceable if the witnesses testify in court that an agreement of purchase and sale was made.

In the presence of several witnesses,Liz verbally agreed to purchase Wade's farm for $25,000.The next day,Wade changed his mind and refused to sell the farm to Liz.On the strength of the verbal agreement of purchase and sale in the presence of witnesses,Liz sued Wade for breach of contract and for a decree of specific performance to compel Wade to sell him the farm.

Ray wished to purchase a motor vehicle from Rita on credit,but Ray was unemployed,and Rita was hesitant to sell to him for that reason.Ziggy,who was quite wealthy,said to Rita: "Sell Ray the automobile on credit,and if Ray does not pay you,I will." -The contract of guarantee is subject to the Statute of Frauds.

Which one of the following cannot be validly created electronically?