Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In October 2010, Sam's Drug Mart (Sam's) entered into a contract with Efficient Management Consulting Inc. to manage and pay utility bills for all of

In October 2010, Sam's Drug Mart (Sam's) entered into a contract with Efficient Management Consulting Inc. to manage and pay utility bills for all of Sam's stores across the country. Ms. Flemish is the sole shareholder, director, and officer of the incorporated company Efficient Management Conlusitng Inc. ("EffManage"). For some reasons, EffManage did not pay the utility bill for Sam's largest store in downtown Toronto despite repeated requests to do so by the utility company. As a result, Sam's utilities were shut off for two weeks and Sam's lost $200,000 in revenues because of EffManage's breach of its contractual obligations. Sam's wants to recover the $200,000 but knows that suing EffManage will be a waste of time; EffManage is a very new corporation and only has $5000 in assets. However, Ms. Flemish (the sole shareholder, director and offeicer of EffManage) is worth millions of dollars and would be easily be able to pay for the $200,000 in damages that Sam's suffered as a result of Effmanage's breach of contract.

Question:

a. Sam's will likely succeed if it claims damages directly against Ms.Flemish. YES OR NO?

b. Explain why and apply the law to the facts!

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_2

Step: 3

blur-text-image_3

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

Family Law

Authors: Jonathan Herring

10th Edition

1292343257, 978-1292343259

More Books

Students also viewed these Law questions

Question

What are key point Management Disclosure of the Sarbanes-Oxley Act?

Answered: 1 week ago

Question

14. Now reconcile what you answered to problem 15 with problem 13.

Answered: 1 week ago