1. Motors Repair Company contracts to sell a car to Nikki for $3,500. Nikki gives Motors Repair a worthless check for the price. Nikki assigns her right to the car to Opie. If Motors Repair refuses to deliver the car to Opie and Opie sues, can Motors Repair raise Nikki's fraud as a defense against delivery of the car to Opie? Explain.
2. Franz, the owner and manager of Green's Grocery Store, contracts to buy sixty crates of fresh peaches from Holly, the owner and manager of Ideal Farms. Suppose that Holly dies before she can harvest and deliver the peaches. How does Holly's death affect their contract? If Holly does not die, but does not deliver, and Franz suffers a loss, is there any limit to the time within which Franz can file a suit against Holly for breach of contract? If so, how might Franz extend this time?
3. Lunch Trucks, Inc., contracts to deliver and serve Meals Catering Service's products to its clients for $5,000 per event, payable in advance. Meals Catering pays the money, but Lunch Trucks fails to perform. Can Meals Catering rescind the contract? Can Meals Catering also obtain restitution? What does it mean to "rescind" a contract? How is a contract rescinded? What is restitution? How is restitution accomplished? Explain.