Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 17CP
Summary Introduction
To determine: Whether mutual consideration exist between the parties.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In a written contract, Sheldon agreed to tutor the children of Mrs. Smith for a certain period
of time. However, Sheldon, prior to starting classes, announced that he would not be able to
tutor the children due to other commitments of his. In this case, there has been a(n):
rescission.
negligent breach.
anticipatory breach.
O malpractice.
Andrews and Brown hired a bookkeeper, Jenice, and gave her general authority to issue company checks drawn on SunTrust Bank so that Jenice can pay employees’ wages and other company bills. Jenice decides to cheat her employers out of $10,000 by issuing a check payable to the Bayside Distributors, one of the suppliers of seafood and fresh local produce. Jenice does not intend for Bayside to receive any of the money, nor is Bayside entitled to the payment. Jenice endorses the check in Bayside’s name and deposits the check in an account that she opened at Wells Fargo Bank in the name “Bayfood Dist. Co.” Wells Fargo accepts the check and collects payment from the drawee bank, SunTrust. SunTrust charges [Name of Restaurant] account $10,000. Denice transfers $10,000 out of the Bayside account and closes it. [Name of Restaurant] discovers the fraud and demands that the bank return the money.
Evaluate which party or parties bear the loss.
Columbia University brought suit against Jacobsen on two notes signed by him and his parents. The notes represented the balance of tuition he owed the University. Jacobsen counterclaimed for money damages due to Columbia’s deceit or fraudulent misrepresentation. Jacobsen argues that Columbia fraudulently misrepresented that it would teach wisdom, truth, character, enlightenment, and similar virtues and qualities. He specifically cites as support the Columbia motto: “in lumine tuo videbimus lumen” (“In your light we shall see light”); the inscription over the college chapel: “Wisdom dwelleth in the heart of him that hath understanding”; and various excerpts from its brochures, catalogues, and a convocation address made by the University’s president. Jacobsen, a senior who was not graduated because of poor scholastic standing, claims that the University’s failure to meet its promises made through these quotations constituted fraudulent misrepresentation or deceit. Decision?
Chapter 12 Solutions
Smith and Roberson’s Business Law
Ch. 12 - Prob. 1COCh. 12 - Prob. 2COCh. 12 - Prob. 3COCh. 12 - Prob. 4COCh. 12 - Prob. 5COCh. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5Q
Ch. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10QCh. 12 - Prob. 11QCh. 12 - Prob. 12CPCh. 12 - Prob. 13CPCh. 12 - Prob. 14CPCh. 12 - Prob. 15CPCh. 12 - Prob. 16CPCh. 12 - Prob. 17CPCh. 12 - Prob. 18CPCh. 12 - Prob. 19CPCh. 12 - Prob. 20CPCh. 12 - Prob. 1TSCh. 12 - Prob. 2TSCh. 12 - Prob. 3TS
Knowledge Booster
Similar questions
- Peter Andrus owned an apartment building that he had insured under a fire insurance policy sold by J.C. Durick Insurance (Durick). Two months prior to the expiration of the policy, Durick notified Andrus that the building should be insured for $48,000 (or 80 percent of the building’s value), as required by the insurance company. Andrus replied that (1) he wanted insurance to match the amount of the outstanding mortgage on the building (i.e., $24,000) and (2) if Durick could not sell this insurance, he would go elsewhere. Durick sent a new insurance policy in the face amount of $48,000 with the notation that the policy was automatically accepted unless Andrus notified him to the contrary. Andrus did not reply. However, he did not pay the premiums on the policy. Durick sued Andrus to recover these premiums. Discuss who wins? Provide justification for your argument/position.arrow_forwardAdrian rents a bicycle from Barbara. The bicycle rental contract Adrian signed provides that Barbara is not liable for any injury to the renter caused by any defect in the bicycle or the negligence of Barbara. Injured when she is involved in an accident due to Barbara’s improper maintenance of the bicycle, Adrian sues Barbara for her damages. Will Barbara be protected from liability by the provision in their contract? Explain.arrow_forwardFrank’s Maintenance and Engineering, Inc., orally ordered steel tubing from C.A. Roberts Co. for use in the manufacture of motorcycle front fork tubes. Because these front fork tubes bear the bulk of the weight of a motorcycle, the steel used must be of high quality. Roberts Co. sent an acknowledgment with conditions of sale including one that limited consequential damages and restricted remedies available upon breach by requiring claims for defective equipment to be promptly made upon receipt. The conditions were located on the back of the acknowledgment. The legend “conditions of sale on reverse side” was stamped over so that on first appearance it read “No conditions of sale on reverse side.” Roberts delivered the order in January. The steel had no visible defects; however, when Frank’s Maintenance began using the steel in its manufacture in the summer, it discovered that the steel was pitted and cracked beyond repair. Frank’s Maintenance informed Roberts Co. of the defects, revoked…arrow_forward
- Frank’s Maintenance and Engineering, Inc., orally ordered steel tubing from C.A. Roberts Co. for use in the manufacture of motorcycle front fork tubes. Because these front fork tubes bear the bulk of the weight of a motorcycle, the steel used must be of high quality. Roberts Co. sent an acknowledgment with conditions of sale including one that limited consequential damages and restricted remedies available upon breach by requiring claims for defective equipment to be made promptly upon receipt. The conditions were located on the back of the acknowledgment. The legend “conditions of sale on reverse side” was stamped over so that on first appearance it read “No conditions of sale on reverse side.” Roberts delivered the order in January. The steel had no visible defects; however, when Frank’s Maintenance began using the steel in its manufacture in the summer, it discovered that the steel was pitted and cracked beyond repair. Frank’s Maintenance informed Roberts Co. of the defects, revoked…arrow_forwardThe Province of Saskatchewan, Canada hired a courier to deliver an envelope to a land registry office in British Columbia (BC). Unknown to the courier company, the envelope contained a document relating to land owned by the plaintiff. If delivered on time, the document would have enabled the plaintiff to complete the sale of its land. The courier company was unreasonable slow and delivered the document too late. Consequently, the plaintiff was unable to perform the contract of sale, and it suffered a loss of huge amounts. The Plaintiff sued the courier company for the loss suffered as well related incidental expenses. Does the action of the Plaintiff prosper? Please state your reasons.arrow_forward“A” and “B” entered into a verbal contract whereby “A” agreed to sell to “B” his only parcel of land for P20,000 and B agreed to buy at the aforementioned price. “B” went to the bank, withdrew the necessary amount, and returned to “A” for the consummation of the contract. “A,” however, had changed his mind and refused to go through with the sale. Is the agreement valid? Will an action by “B” against “A” for specific performance prosper? Reason.arrow_forward
- Anderson, a farmer, orally agreed to buy a used tractor from the Copeland Equipment Company for $475. Copeland delivered the tractor to Anderson, who used it for 11 days. During this period, Anderson could not borrow enough funds to cover the purchase price. Anderson therefore returned the tractor to Copeland. Both parties agreed that their sales contract was canceled when the tractor was returned. However, Copeland later claimed that under the doctrine of quasi- contract, Anderson was required to pay for the 11-day use of the tractor. Do you agree with Copeland? Explain your answer. [See Anderson v. Copeland, 378 P.2d 1006 (OK).]arrow_forwardRensselaer Water Company contracted with the city of Rensselaer to provide water to the city for use in homes, public buildings, industry, and fire hydrants. During the term of the contract, a building caught fire. The fire spread to a nearby warehouse and destroyed it and its contents. The water company knew of the fire but failed to supply adequate water pressure at the fire hydrant to extinguish the fire. The warehouse owner sued the water company for failure to fulfill its contract with the city. Can the warehouse owner enforce the contract? Explain.arrow_forwardWells Fargo Credit Corporation (Wells Fargo) obtained a judgment of foreclosure on a house owned by Mr. and Mrs. Clevenger. The total indebtedness stated in the judgment was $207,141. The foreclosure sale was scheduled for 11:00 A.M. on a specified day at the west front door of the Hillsborough County Courthouse. Wells Fargo was represented by a paralegal, who had attended more than 1,000 similar sales. Wells Fargo’s handwritten instruction sheet informed the paralegal to make one bid at $115,000, the tax-appraised value of the property. Because the first “1” in the number was close to the “$,” the paralegal misread the bid instruction as $15,000 and opened the bidding at that amount.Harley Martin, who was attending his first judicial sale, bid $20,000. The county clerk gave ample time for another bid and then announced, “$20,000 going once, $20,000 going twice, sold to Harley… .” The paralegal screamed, “Stop, I’m sorry. I made a mistake!” The certificate of sale was issued to Martin.…arrow_forward
- X and Y executed an instrument entitled “Option to Purchase,” whereby the latter agreed to sell to the former a parcel of land for P1,500,000 within a period of two (2) years from the execution thereof. X made several tenders of payment, but Y always refused the tenders. Finally, X brought an action against Y for specific performance and damages. Defendant set up the defense that her contract with plaintiff is a mere unilateral offer to sell, and consequently, since it is unsupported by a consideration which is separate from the purchase price, said promise is not binding upon her pursuant to Art. 1479 of the NCC. Will the action prosper? Reasonsarrow_forwardPalmer made a valid contract with Ames under which Ames was to sell Palmer’s goods on commission from January 1 to June 30. Ames made satisfactory sales up to May 15 and was then about to close an unusually large order when Palmer suddenly and without notice revoked Ames’s authority to sell. Can Ames continue to sell Palmer’s goods during the unexpired term of her contract?arrow_forwardAssume an agent is given authority by the principal to sell a property. The principal only states that the agent may sell the property and the agent is given no further instructions. The agent reasonably believes that it will be necessary to perform $10,000 worth of improvements on the property in order to sell it. Therefore, the agent contracts to have these improvements made. He/she then sells the property. The principal believes that the improvements were not authorized and refuses to reimburse the agent for the expenses associated with the sale. Discuss the rights and liabilities of the principal and agent. Should the principal be forced to reimburse the agent? If the principal continues to refuse to reimburse the agent, what action may be taken by the agent? If the parties were to engage in a lawsuit, who would win? Why? If the answer depends on information not provided in the scenario, specify what further information one would need to render a firm opinion.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill Education
Management (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSON
Business Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSON
Fundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON