Question
Section IV.SHORT ANSWER QUESTIONS .( Max. 20 points ) This section contains 1 Scenario and three short answer questions.must write your short answer in sentence
Section IV.SHORT ANSWER QUESTIONS.(Max. 20 points)
This section contains 1 Scenario and three short answer questions.must write your short answer in sentence and paragraph form to each of the following questions after analyzing the following fact pattern.
Scenario:
Ivan owns a landscaping and lawn service business in Greentown. Virgil is a loyal customer of Ivan's services. Ivan speaks to Virgil about drumming up more business in Virgil's neighborhood. Virgil tells Ivan that he is willing to help out. Ivan tells Virgil that for each new customer he brings to Ivan at the rate of $100 per month, Ivan will reduce Virgil's monthly bill of$100 by $5.
Virgil's neighbor, Lucy, has the worst yard in their neighborhood. The grass is never mown, and her hedges are overgrown. Virgil talks to Lucy about possibly hiring Ivan to do her yard work. Lucy sarcastically says: "Sure. . . as long as you pay for it!"
Undeterred, Virgil talks to 19 other neighbors who agree to lawn services. They all go to Ivan at various times that Ivan is in the neighborhood and agree to a $95 monthly fee for lawn services.
Ivan then proceeds to service the neighborhood for the next six months. While he is servicing the neighborhood, he cuts Lucy's lawn, as well as the others. Lucy notices that her lawn is being serviced and her hedges trimmed, but says nothing, remembering that she told Virgil she would have her lawn serviced if Virgil covered the cost. She asks Ivan's workers to trim her hedges for another $200. Virgil watches Ivan's employees working on Lucy's property. He is happy to see that Ivan is cleaning up Lucy's yard.
At the end of the six-month period, each customer is presented with an invoice for services. Each of the 19 neighbors who saw Ivan individually, after their talk with Virgil, is charged $570 ($95 per month for six months).Lucy receives an invoice for lawn service of $570 and another invoice for hedge trimming of $200. She promptly walks the invoices across the street and tacks them to Virgil's door with a note that says: "Thanks for the lawn services!"
Virgil anxiously opens his invoice expecting to see that his service is now free. Instead he receives an invoice for $600 ($100 per month for six months). Additionally, Ivan comes to Virgil's home and demands that he pay for Lucy's service because she told Ivan that she and Virgil had agreed that Virgil would pay for Ivan's services.
A.Did Ivan and Virgil have a valid, enforceable Contract?In your answer, be sure to explain whether any Contract they might have had was express or implied and what the material terms of any such Contract were.(Max. 10 Points).
B.Will Ivan win a judgment against Virgil in the event that Ivan sues Virgil for $600 for services rendered during the six-month period discussed?Be sure to address the legal Counterclaims and defenses that Virgil could assert against Ivan in this case.(Max. 5 Points).
C.Will Ivan win a judgment against Lucy in the event that Ivan sues Lucy for $770 for services rendered?Be sure to address the reasons and legal actions that Ivan could assert against Lucy in his case, as well as any liability that Virgil may have to Ivan in that regard. (Max. 5 Points)
Section V.ESSAY QUESTION.(Max. 20 points)
This section contains 1 essay question.Write the letter essay requested, analyze the following fact pattern in acceptable paragraph and sentence format and respond fully to the concerns expressed by the Lord Berkeley Corp. in your letter.
ESSAY QUESTION:Lord Berkeley Corp. recently concluded its discussions with Dewey, Cheatem & Howe, a mid-sized accounting firm, after rejecting a Big-5 accounting firm's offer to undertake an annual company-wide audit at high hourly rates.Lord Berkeley Corp. has requested that its new accounting firm Dewey, Cheatem & Howe immediately commence work and complete their corporate audit within 60 days in order to minimize any disruption with regard to ongoing bidding processes and potential contracts.
Previously, Big-5 Accountants had proposeda fair flat project rate to Lord Berkeley in a writing that also indicated that "Accountants agree to use their best darn efforts in accordance with reasonable and professional practice standards to complete the requested corporate audit within sixty (60) days."Because of the time-sensitive nature of the work, the Big-5 Accountants Agreement also provided that "this Agreement and all offers contained herein shall be null and void if not signed, accepted and faxed within 48 hours of receipt by the Lord Berkeley Corp."Lord Berkeley Corp.'s President mailed a letter within 48 hours of his receipt to Big-5 Accountants that indicated that the hourly rates and everything else in the agreement was acceptable and, moreover, underscored that the audit work be performed and completed within 60 days.However, the President's Secretary forgot to fax the letter to the Big-5 Accountants before leaving work on the day that the letter was mailed and faxed a copy of the President's letter to the Big-5 Accountants' office first thing on Monday morning.
Later that same Monday morning, the President of Lord Berkeley Corp. received a letter from Dewey, Cheatem & Howe that advertised its accounting firm's work as "top rate quality" and "big firm quality" at rates lower than those quoted by Big-5 and other large accounting firms.The letter further indicated that Dewey, Cheatem & Howe could perform corporate audits within 30-45 days for a specified project rate that was less than the one the Big-5 Accountant firm had proposed.Attached to the letter were two articles from an accounting trade journal that detailed two ongoing investigations by the U.S. Department of Justice involving fraud allegations against Big-5 Accountants and several other large firms.
Upon reviewing the letter, Lord Berkeley Corp.'s President phoned Dewey, Cheatem & Howe and inquired further about their services.He was impressed with the conversation and the representatives of the firm who had indicated that they could without a doubt complete a corporate audit within 45 days.Overnight, the President considered the draft Agreement faxed to him by Dewey, Cheatem & Howe.On Tuesday, having heard nothing from the Big-5 Accounting firm, the President signed and faxed the Agreement back to the Dewey firmjust before leaving the office at 5 p.m.
The next morning, the President received a call from the Big-5 Accounting firm advising that they are in receipt of his letter and asking for his permission to send a team of accountants to Lord Berkeley that afternoon to begin the corporate audit as soon as possible "in accordance with the Agreement reached."The President responded in that same phone call that they had no formal, written Agreement with the Big-5 firm.He also told them that Lord Berkeley Corp. hadn't heard from the Big-5 Accounting firm in two days and that in the interim, he had engaged another firm to do the work.
The Big-5 Accounting Firm forwarded a letter shortly thereafter to the President of Lord Berkeley Corp. and to Dewey, Cheatem & Howe demanding the right to perform the corporate audit, advising that it could still complete the required work within the original 60-day time frame and threatening to sue Lord Berkeley Corp. for breach of contract and Dewey, Cheatem & Howe for tortious interference with contractual relations.Lord Berkeley Corp.'s President insists he was correct, that he had no Agreement with the Big-5 Accounting firm, and requests your best analysis of the claims involved.He also asks whether he could countersue the Big-5 Accounting firm on any applicable legal grounds.Write a letter to the President responding fully to his concerns.
Section VI.OPTIONAL EXTRA CREDIT (Max 10 points)
Consider the following.What is the most likely result?Explain your reasons in a paragraph or two.
Facts:Jenny was her grandfather's favorite and she stayed to live with him in his old age, assisting him with all of his affairs.The year before he died, Jenny brought a real estate contract to her 98-year old bed-ridden grandfather who was not feeling well that day and took extra pain medication an hour or so before.She explained that she wanted his vacation home in Florida and that if he signed the realty agreement passing title to her for $1 and in consideration of all of the care and love she showed him during her life she would continue to care for him for the rest of his days, though she would always love him.After initial reluctance and Jenny's continued insistence, Grandpa signed the Contract.When Grandpa died six months later, Jenny's brother became enraged that she received the Florida vacation home.He accused Jenny of pressuring Grandpa into the deal and is now seeking in the Courts to void the Contract.
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