Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help explain for better understanding. In 2004, Stephanie entered into a contract with Laura for the design and installation of custom-crafted window treatments. The

Please help explain for better understanding.

In 2004, Stephanie entered into a contract with Laura for the design and installation of custom-crafted window treatments. The window treatments were constructed of chemically infused wormwood and came with an express guarantee to keep a minimum of 99 percent of sunlight out of the home for ten years. Before entering into the contract, Laura told Stephanie that she had just recently developed the treated wormwood and had yet to form a corporation, however, her new company would be called "Wormwood Windows, Inc." Laura signed the contract "Laura, for Wormwood Windows, Inc.," and Stephanie paid the agreed-upon price of $50,000 with a check made out to the corporation. Two months later the corporation filings were approved by the state, and Laura deposited the $50,000 into her business account. In 2009, Stephanie noticed that the wormwood window treatments began to crack internally and outside light began to seep through the treatments into her home. Stephanie contacted Laura about the problem and demanded that Laura make good on her guarantee. Laura insists that there is no guarantee because the contract was entered into before the formation of the corporation. What should Stephanie say to Laura about the liability of both Wormwood and Laura?

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

Step: 3

blur-text-image

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

Law Express Consumer And Commercial Law

Authors: Judith Tillson

6th Edition

1292295775, 978-1292295770

More Books

Students also viewed these Law questions

Question

*View & click the link below...

Answered: 1 week ago

Question

How are most students funded?

Answered: 1 week ago

Question

The relevance of the information to the interpreter

Answered: 1 week ago

Question

The background knowledge of the interpreter

Answered: 1 week ago