Question
Question B Fact Pattern B: A contract for construction of a 156 foot supply vessel for the price of $1,350,000.00 was formed and it specified
Question B
Fact Pattern B: A contract for construction of a 156 foot supply vessel for the price of $1,350,000.00 was formed and it specified that it was "between Camcraft (the builder) and Southern-Gulf Marine (the buyer), a corporation organized by virtue of the laws of Texas, appearing through D.W. Barrett, its President." The contract was signed by Mr.Dudley Bowman, as President of Camcraft, Inc., and by Mr. DW. Barrett, both individually and as President of Southern-Gulf Marine Co. At the time that the contract was signed, Southern-Gulf Marine was not incorporated. However, D.W. Barrett subsequently incorporated Southern-Gulf in the Cayman Islands of the West British Indies.
Part One:Refer to Fact Pattern B, above. Assume that, after incorporation, the Board of Directors of Southern-Gulf passed a resolution to ratify, confirm, and adopt the aforesaid agreements. Further assume that Southern-Gulf defaulted on its obligation to make payments under the contract shortly thereafter. If Camcraft decides to sue on the contract, what result?
Part Two:Refer to Fact Pattern B, above (but disregard the information in Part One, above.)Assume that, after incorporation, the Board of Directors of Southern-Gulf passed a resolution to ratify, confirm, and adopt the aforesaid agreements. Further assume that the President of Camcraft was notified about the Southern-Gulf Board'sratification and about the change in Southern-Gulf's state of incorporation from Texas to the Cayman Islands and signed a document indicating his acceptance. Also assume that Camcraft defaulted on its obligations under the contract and refused to complete construction of the vessel (the cost of completion was much higher than the$1.35 million contract price). If Southern-Gulf sues, what result?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started