Sheila owned an old roadside building that she believed could be easily converted into an antique shop. She talked to her friend Barbara, an antique fancier, and they executed the following written agreement: a. Sheila would supply the building, all utilities, and $100,000 capital for purchasing antiques. b. Barbara would supply $30,000 for purchasing antiques, Sheila would repay her when the business terminated. c. Barbara would manage the shop, make all purchases, and receive a salary of $500 per week plus 5 percent of the gross receipts. d. Fifty percent of the net profits would go into the purchase of new stock. The balance of the net profits would go to Sheila. e. The business would operate under the name “Roadside Antiques.” Business went poorly, and after one year, a debt of $40,000 is owed to Old Fashioned, Inc., the principal supplier of antiques purchased by Barbara in the name of Roadside Antiques. Old Fashioned sues Roadside Antiques, and Sheila and Barbara as partners. Decision?
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- Mai enters into an agreement to sell an antique bedroom set to Alice for $200,000 because it is exquisite and unique. Madison offers to pay Mai $250,000 for the furniture. Mai calls Alice to cancel the contract. Is this a type of contract where usually contains a liquidated damages clause? Why or why not?arrow_forwardA limited partner is responsible for any debts of the partnership, regardless of whether he or she was directly involved in the transaction that created the debt.;True or Falsearrow_forwardCarina Cooks has been employed by Realfood Restaurant Group (RRG) for around 3 years. Cooks was first hired as a line cook. After seeing Cooks’ potential, Cooks was quickly promoted to Sous Chef. At the time of the promotion, Cooks signed a document that stated: AGREEMENT NOT TO COMPETE: In consideration of continued employment at RRG, I agree that, in the event of termination, I will not engage in any business as an owner, employee, or stockholder with any company that competes, directly, or indirectly with RRG, for ten years. Last year, Cooks was asked to head a special project to design the menu for a new RRG concept restaurant – the Fast But Fancy Fried Food Emporium. The restaurant was to sell deep-fried food in a fine dining atmosphere with fine dining pricing. For her role, Cooks was promised a bonus of 3% of the restaurant’s profits over the first year of operation in addition to her salary as the Head Chef of the restaurant. Cooks was skeptical of such a restaurant’s…arrow_forward
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- State whether the following agreements or contracts are void, voidable valid, and provide a reason for your answer. 1 ) Taylor, aged 17, gets married, and divorces two months later. After getting divorced, she enters into a contract with Michael for the sale of his house. ( 2 ) Jessica, aged 5, enters into a contract with John, aged 11, for the sale of his bicycle. 3 ) Nomsa, aged 16, runs a successful boutique with the consent of her parents, and enters into a contract relating to her business. 4 ) Amy, who is 17, has inherited an apartment in Cape Town from her deceased father. The apartment is valued at R2 million. With her mother’s assistance, Amy enters into an agreement to sell the apartment to her aunt. 5 ) Justin, who is mentally ill, concludes a contract for the sale of his laptop without his curator knowing. (2)arrow_forwardOlav starts Power Cells to make and sell batteries. Later, Olav contracts with Quinn to invest additional capital in the firm in exchange for 25 percent of the profits. Olav and Quinn are not partners in Power Cells becausearrow_forwardWilliam Schmalz entered into an employment contract with Hardy Salt Company. The contract granted Schmalz six months’ severance pay for involuntary termination but none for voluntary separation or termination for cause. Schmalz was asked to resign from his employment. He was informed that if he did not resign, he would be fired for alleged misconduct. When Schmalz turned in his letter of resignation, he signed a release prohibiting him from suing his former employer as a consequence of his employment. Schmalz consulted an attorney before signing the release and upon signing it received $4,583 (one month’s salary) in consideration. Schmalz now sues his former employer for the severance pay, claiming that he signed the release under duress. Is Schmalz correct in his assertion?arrow_forward
- In September, Amina hired Bryan as a delivery man. Bryan was to commence work on 1 November. On 1 October, Amina wrote to Bryan telling him that, despite their agreement, economic circumstances were such that she no longer required his services. Can Bryan sue Amina? Explain your answers in light of the principles learned on breach of contract.arrow_forwardThe standard of reivew used by the Connecticut Supreme Court in determining whether the takings were constitutional under the 5th Amendment was: a. The takings were reasonably necessary to achieve the City of New London's intended public use. b. The takings were substantially necessary to achieve the City of New London's intended public use. c. There was clear and convincing evidence that the economic benefits of City of New London's plan would in fact come to pass. d. The evidence was beyond a reasonable doubt that the economic benefits of the City of New London's plan would in fact come to pass.arrow_forwardMax and Jack enter into a contract which states: "Jack will paint Max's kitchen blue and Max promises to pay Jack $200 upon completion." Which is an example of an implied condition? That Max will pay Jack upon completion of the painting. That Jack will use blue paint when painting Max's kitchen. That Max will allow Jack access to his kitchen That Max will pay Jack $200.arrow_forward
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