Question
Ben and Ronald owned an auto wrecking dealership, specializing in parts for older model vehicles. They had an agreement whereby Ben would do all the
Ben and Ronald owned an auto wrecking dealership, specializing in parts for older model vehicles. They had an agreement whereby Ben would do all the business aspects, looking after the paperwork and administration, and that Ronald would do all the labour, as in fixing parts, removing parts, and any mechanics that need it done. They agreed that they would share 50% each of the profits of the business, they signed an agreement.
Justin owned a used car dealership who often would obtain parts from Ben and Ronald's shop. He generally did all his business through Ben. Unknown to Ronald, Justin and Ben were taking parts from the vehicles and selling them on the open market. The estimate amount of loss to the business was about $3,000.00.
Mary was an 86 year old widow who lived in her own home and was a neighbor to Justin. Mary indicated that she had two older vehicles, that belonged to her late husband, in the garage, she complained that they were taking up a lot of room and wanted to know if Justin was interested in buying them. Justin went into the garage and had a look at the two vehicles and was surprised to see a vintage model Porsche in mint condition as well as a Mercedes, also in mint condition. Justin then offered Mary $500.00 to take the vehicles off her hands. That would clean out her garage. Mary, anxious for the extra cash, agreed to this amount saying that she would have the bill of sale ready for him the next day at noon, this was agreeable to Justin.
Later that day, Ronald had been looking for some supplies for the garage, when he tripped on a rug, that was improperly installed by the ABC Carpet Company. Ronald bumped his head on the desk causing some paperwork to fall on the floor and a large cut to his head. He looked at the paperwork that had fallen to the floor and discovered that Justin and Ben were improperly selling inventory of their partnership, thereby causing him to lose part of his share. Being angry at Ben for what he had done, Ronald went immediately to Ben's house and caused extensive damage to his home.
When Ben arrived home and found out what had happened, he confronted Ronald and the
two got into a fight, Ronald gave Ben a black-eye.
The next day Justin had contacted Ben to meet him over at Mary's house so they could have both the vehicles removed once they signed the paperwork and handed over the money. Mary, meanwhile, was excited that she was gonna get money for the old cars in the garage, had contacted her son, Allan. Allan was concerned that somebody might be trying to rip-off his mother so he attended at the house at noon.
By the time Allan arrived at the house Mary had already taken the money and signed over the bill of sale to Justin. Meanwhile, Justin and Ben were out back, hooking up the cars to the tow-truck, when Allan approached them and indicated to them that he felt they were ripping off his mother. Allan indicated to Justin and Ben to remain in the garage until theauthorities have been called.
Questions
1. Discuss the tort issues in the above case, outlining who the parties are, what the tort is, and the likely outcome.
2. Outline the contract issues in the above case, outlining the parties, the nature of the issue and the likely outcome.
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