Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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International Underwater Contractors, Inc. (IUC), entered into a written contract with New England Telephone and Telegraph Company (NET) to assemble and install certain conduits under the Mystic River for a lump sum price of $149,680. Delays caused by NET forced IUC’s work to be performed in the winter months instead of during the summer as originally bid, and as a result, a major change had to be made in the system from that specified in the contract. NET repeatedly assured IUC that it would pay the cost if IUC would complete the work. The change cost IUC an additional $811,810.73; nevertheless, it signed a release settling the claim for a total sum of $575,000. IUC, which at the time was in financial trouble, now seeks to recover the balance due, arguing that the signed release is not binding because it was signed under economic duress. Is IUC correct?
Henk made an oral contract with Joel's garage to work as the manger of the garage for the next two years. Joel wrote Henk a letter stating all of the terms of the oral contract and signed the letter. Joel refuses to honor the agreement so Henk sues for breach of contract. Joel contends that their agreement can’t be enforced because it was a two-year contract and had to be in writing under the Statute of Frauds. Who wins the suit? Why?
Adrian 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.
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- Facts: On February 1, 2004, Buyer entered into a contract to buy Seller’s house in Las Vegas for $532,500 with a March closing date. On February 3, 2004 Seller notified Buyer that he was terminating the contract (without any legal basis for taking such action). The Seller then told Buyer that he would sell him the house for a higher price. On February 3, 2004, Buyer and Seller entered into a new contract for a price of $578,000. On February 16, 2004, the Seller refused to perform under the contract. The Buyer sued seeking to enforce the contract. Question: Under the common law of contracts, is the modification to the original contract enforceable? Deliverable: Write a clear, grammatically correct answer being sure to address the following points in your answer: Provide a clear statement of the governing legal principle (also called a ‘black letter law’). The ‘governing legal principle’ in any case is the legal principle that is the key to completing the legal analysis of the problem…arrow_forwardfootsmell shoe store, inc. entered into a separate contracts with two rising movie stars, namely anton and bart. with anton, the agreement was that the shoe store shall deliver at a specified date for the price of p10,000.00 a pair of mikee shoes which the store has been manufacturing for the general public but which at the time of the contract had already been sold out, and with bart, the agreement was that the shoe store shall deliver at a specified date for a price of p20,000.00 a pair of shoes to be made specially for him, in accordance with a design submitted by him. what is the nature of these two contracts? explain.arrow_forwardIn early 2020, James, Inc. announced its intention to construct a manufacturing facility in the Shenandoah Valley. To persuade James, Inc. to locate the facility in Burton County, the county government contributed a six-acre tract of undeveloped county land to the corporation. The appraised FMV of the land at the date of the contribution was $280,000. Soon after accepting the contribution, James, Inc. paid $3,300 to an attorney to do a title search to make sure that it had uncontested ownership of the land. James also paid $12,900 for a survey and site map of the six acres and $1,360 for two water wells drilled on the land. Did James recognize income because of the receipt of the land? What is the proper tax treatment of James’ $17,560 expenditure with respect to the land? In 2021, James’s attorney discovered that the estate of Elsa Reynolds claimed title to the six acres and was preparing to file suit in Virginia state court to regain ownership and possession. The attorney advised…arrow_forward
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