Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

After the fiasco of the negotiations with Brenda, Gary has decided that the best way to make money from a commercial fishing vessel is to

After the fiasco of the negotiations with Brenda, Gary has decided that the best way to make money from a commercial fishing vessel is to lease it for an annual rental fee. In 2010, Gary leased the vessel to his cousin, Sam, for 10 years at an annual rental of $10,000. In 2012, it became apparent that scallop numbers were declining, and Sam soon realised that he would be unable to meet the annual rental charge unless the catch improved. He approached Gary and advised him of his fishing and financial difficulties. He also complained that the engine in the commercial fishing vessel was not as powerful as he had been led to believe. Gary denied that he had ever made any promises or statements about the engine power. However, he said that he was prepared to halve the annual rental until the catch improved and, accordingly, the rental charge was reduced to $5000. Gary signed a document to this effect. In 2015, the catch improved to such an extent that Sam is able to resume paying $10,000 a year. Gary was delighted and advised Sam that not only did he have to pay $10,000 a year until 2020, but also the $15,000 forgone by Gary in the previous three years. Advise Sam whether he must pay the $15,000 claimed by Gary

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Business Law

Authors: Anthony Liuzzo, Ruth Calhoun Hughes

11th Edition

1260734544, 978-1260734546

More Books

Students also viewed these Law questions