- Legal environment in Business course questions.

Answer the questions below

Anna entered into a contract with Almaha Brothers Corporation to buy furniture on behalf of Beakin Company. Beakin advised Anna to use her own name and not disclose to Almaha that Anna was acting on behalf of Beakin. Who is liable to Almaha Brothers in case there is a breach of contract? Explain.

Marsha contracted with Stan, a real estate broker, to sell Marshas house. Stan entered into negotiations with Cara, who seemed interested in purchasing the property. Cara found the price agreeable, but insisted in including in the sales contract a clause granting her the right to cancel the contract if she could not get a loan to finance her purchase. Later, Cara cancelled the contract, giving as her reason inability to procure her loan. Stan turned to Marsha and claimed that he was entitled to his commission even though the sale did not go through. Must Marsha pay Stan a commission? Explain.

Ashton authorized Pam, a grain broker, to buy at the market 20,000 bushels of wheat for Ashton. At the time, Pam had 5,000 bushels in storage for Mark, who had authorized Pam to sell for him. Pam also had 15,000 bushels that she owned. Pam transferred these 20,000 bushels to Ashtons name and charged Ashton the current market price. Shortly thereafter, and before Ashton had used or sold the wheat, the market price declined sharply. Ashton refused to pay for the wheat and tried to cancel the contract. Can he cancel? Explain.