4.Inez had a specific set of plans to build a sailboat.The plans were detailed in nature and any boatbuilder can build the boat.Inez solicited bids, and the low bid was made by the Whale of a Boat Corp.Inez contracted in writing with Whale to build the boat for $4,000, with $1,000 paid in advance.Whale then received unexpected business and delegated its obligation to build to Quick Brothers, promising to pay the entire boat price to Quick.When the boat was ready for delivery, Inez refuses to accept, even though the boat was built to specifications, exactly what was required, and was perfect in every way.(EXPLAIN ALL ANSWERS using appropriate contract terminology)

a. Does Quick Brothers have standing to sue Whale for the$4,000?

b. Does Quick Brothers have standing to sue Inez for the $4,000?

c. What will result if Whale sues Inez?

d. What will result if Whale sues Quick Brothers?

5.Same facts as in "4" above, except the boat was not built tothe specifications, and Inez having expected a beautiful boat exactly as specified, rejected the boat.(EXPLAIN ALL ANSWERS using appropriate contract terminology)

a. Can Inez sue Quick?

b.Can Inez sue Whale?

c. Assume Inez accepted the boat, finding it satisfactory, but did not pay the remainder due Whale, so Whale did not pay Quick.Can Quick sue Whale?What result?

d. Same as "c" above- Can Quick sue Inez?What result?

6.Alexandra, living in Albany NY was accepted as a freshman to the University of Rochester, at a college about two hundred miles from her home for the fall semester.Alexandra's rich uncle, Michael, decided to give Alex a car for Christmas.In November, Michael made a contract with Jackson Auto Sales to purchase a new Lexus UX for$42,000 to be delivered to Alex just before the Christmas holidays, in mid-December.The title to the car was to be in Alexandra's name.Michael paid the full price, called Alexandra and told her about the gift, and then took off for a six-month vacation in Europe.Jackson never delivered the car, and Alexandra filed an action against Jackson.(EXPLAIN ALL ANSWERSusing appropriate contract terminology)

a.Does Alexandra have any standing in the contract between Michael and Jackson, and, if so, what is it?

b. Can Alexandra recover for Jackson's breach of contract?

c. What if Michael had agreed with Jackson to make installment payments on the car and, after the car was delivered to Alexandra then failed to make the payments?What result?Explain.(Who would sue whom, who would prevail; ignore the obvious that the car could be repossessed as it's not directly the contract issue).

d. Same facts as "c" above.Could Alexandra have sued her uncle for breach of the contract?

7.Arnold borrowed $250 from Jamal and promised, in writing,to pay him back $251 in two weeks.One week later, Arnold's sister Kim came to him (Arnold) and needed money.Arnold loaned Kim $250, but explained that she had to pay Jamal back the full amount due in one week, so they signed a contract with those terms.When Jamal asked Arnold if he was going to pay him back, Arnold sent Jamal a copy of the contract he made with Kim.(EXPLAIN ALL ANSWERSusing appropriate contract terminology)

a.In the transactions above,fully explain the contractual situation including the status of each party.

b. If Kim does not pay Jamal, who can Jamal sue?Kim? Arnold?Explain fully.

8.Annie promised to give her 1998 Honda Civic to her neighbor Jean, as long as Jean drove Annie's daughter to school every morning for the next 12 months.This agreement is an example of what type of contractual situation?Explain.

9.On February 1, Frankie agreed to play jazz piano background music at Jan's Place, a local tavern.That type of music is rather generic, so any high-level player could do it- Frank's name was not advertised.The terms in the written contract were that he was paid $100 plus tips to play from 9-11 pm on Saturday nights; drinks were included.On April 1, he got an offer to play jazz piano for $200 per Saturday night at the Club deCopa.As a result, every Saturday in April, he hired Sally, a college student at the local music conservatory who was of equal skill, to play piano at Jan's.Jan still mailed Frankie a $100 check every week, from which he paid Sally the entire amount, $100, and he played at the Club deCopa.Finally, in May, Frankie introduced Sally to Jan, and all agreed that Jan should sign a new contract with Sally so Frankie didn't have to act as a middleman anymore.(EXPLAIN ALL ANSWERSusing appropriate contract terminology)

a. Fully explain the contractual situation that existed in March

b. Fully explain the contractual situation that existed in April.

c. Fully explain the contractual situation that existed in May.

d. Assume that in May Frank met with Jan and they agreed toamend his contract to explicitly permit Frank to have a substitute play for him, as long as the sub was as skilled.

e. Fully explain the contractual situation that would exist if Frankie's name was advertised to play original jazz music, andSally was less skilled than Frankie to a degree that Jan was very unhappy.

10.Larry lived on Elm St. in a rural town.For years he had problems with his septic system, as did his neighbors, for reasons relating to the drainage in the neighborhood.Larry's rich aunt, Nina, decided that she would help Larry, so she hired Sampson Sewer Inc. to dig up the street and install sewers for the entire neighborhood.Both Larry and his next-door neighbor Lucy, were excited to hear the news, as the poor septic systems had been a long-time thorn in each of their sides- and very expensive to continually repair.Nina signed a written contract which included paying $120,000 at signing (the entire amount), and requiringSampson to obtain all necessary permits, and that the job would be completed in two months.However, after two months, Sampson had not even begun the project.For each of the following 1) respond to the question and 2) fully explain your answer:(EXPLAIN ALL ANSWERSusing appropriate contract terminology)

a. If Nina sues Sampson, what result?

b. If Larry sues Sampson, what result?

c. If Lucy sues Sampson, what result?

11.Preston signed a written contract to borrow $5,000 from 3rd National Bank of Dryden.He was required to begin making monthly payments of $250 per month beginning one year later, but if he was more than one month late, the acceleration clause would take effect.That clause stated that if a payment was more than one month late, the entire loan was required to be paid back immediately.Prior to signing the contract, he was worried about missing a payment, and he was told by the bank manager not to worry because the bank disregarded that in practice, and that they don't bother enforcing anythinguntil he wouldmiss at least three payments; and maybe then the acceleration clause would become effective.Six months later, the 3rd National Bank of Dryden sold the debt contract to Honeywell Financial in a subsequent written contract, assigning all rights, and Preston received a notice to forward payments to Honeywell.Preston made the first three payments, but sadly lost his job, and missed one payment.Honeywell immediately demanded payment of the full debt, notwithstanding Preston's assertion that he was told he could miss up to two payments, and the bank manager was still working at 3rd National and was willing to testify on Preston's behalf.(EXPLAIN ALL ANSWERSusing appropriate contract terminology)

a. Is Preston's defense regarding what the bank manager said valid?

b. Can Honeywell sue 3rd National for Preston's default?What result?

c. Can Honeywell sue Preston even though he missed only one payment?What result?

12. For each of the following, explain whether the contract is valid, voidable, void or unenforceable, using the meanings as defined in this class:

a. On January 15, Jobin, an accountant, agreed to prepare Maria's restaurant's federal income taxes for a $900 fee.The taxes were due on April 15.

b. Antoine called Ellen's Butcher's Shop, got the answering machine, and left a message ordering 50 pounds of steaks for his grocery store, to be delivered in two weeks.One week later Antoine sent Ellen a note confirming the order.

c. Brenda asked Ellen's Butcher Shop how much 40 pounds of prime rib would cost for her grocery store to be delivered in two weeks.Ellen said $775, and faxed over an order form with that price.Brenda signed the form, and faxed it back to Ellen.One week Ellen called and explained that due to an unexpected beef shortage, the price would have to be $910.

d.Gary said to his neighbor Mallory "would you like to purchase my riding mower for $600?" She replied "no thanks, that's too much.I wouldn't give you more than $400 for the loud, dirty, green junk."Gary said, "No, it works fine.The lowest I'll go is $495."Mallory said "okay- it's a deal."

e. Harveyhad a "For Sale: $4,000 firm" sign in the window of his 1999 Chevy Silveradopick-up, parked in his front yard.Rachel saw it, knocked on his front door and asked it was sold yet, and Harvey said it wasn't.Rachel said "would you take $3,900 for it?"and Harvey said "sure, you have a deal" and shook her hand.

This class is Business Law ---> Capacity and Assent