Question
Lisa Goldstein reserved space for a wedding in a building owned by Orensanz Events, LLC, in New York City. The rental agreement provided that on
- Lisa Goldstein reserved space for a wedding in a building owned by Orensanz Events, LLC, in New York City. The rental agreement provided that on cancellation of the event for any reason beyond Orensanzs control, the clients sole remedy was another date for the event or a refund. Shortly before the wedding, the New York City Department of Buildings found Orensanzs building to be structurally unstable and ordered it vacated. Orensanz closed the building and told Goldstein to find another venue. Goldstein filed a lawsuit in a New York state court against Orensanz for breach of contract, arguing that the citys order had specified a cause within the defendants control. Was the commercial buildings structural issue a foreseeable difficulty, thus making Goldsteins claim valid? Explain your answer using legal contract concepts from the chapter. What factual information might make a difference in how a court would decide this dispute?
2. Dr. John Holm signed a two-year employment agreement with Gateway Anesthesia Associates. During negotiations for the agreement, Gateways president, Dr. Jon Nottingham, told Holm that on completion of the contract he would become a partner in the firm, and during the term, he would be paid like a partner. The written agreement did not reflect this promise, however. The actual contract read that Holm would be paid based on net collections for his services, and it did not state that he would become a partner at the end of the term. Later, Gateway told Holm that it did not intend to make him a partner. Holm filed a complaint in an Arizona state court against Gateway, alleging breach of contract. Before the trial, Holm filed a motion to reform the contract to express what he had been told. Nottingham did not dispute Holms account. What is the basis for the reformation of a contract? Is it appropriate in this case and do you think the court will agree with Dr. Holm? Please provide a detailed explanation using material from the chapter.
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