Wk3 Cases and Problems

Case 1

A retired businessman who owned a track of land was approached by a real estate agent, who is interested to buy his land. The purchase price offered by the agent was above the prevailing fair market value (FMV). The wants to develop the land into a commercial area and sell it to the public. The agent discussed the terms and conditions of the deed of sale in detail to the businessman, and the businessman agreed to the deal. Last year, the businessman was diagnosed of dementia by his family doctor.

Case 2

Jacky invited her friend, Lourdes, to her house. Lourdes has a beautiful sport car and Jacky is interested and offered to purchase it at a prevail market price or FMV, but Lourdes rejected her offer. Jacky offered Lourdes a bottled of vodka. When Lourdes consumed so much of it, she feels dizziness. Jacky took advantage and offered again to purchase her sport car and, this time, with a copy of bill of sale and ready for signature. The bill of sale was, indeed, signed.

Case 3

Tan, who is a minor, agreed to become a tenant of a house and to pay John, landlord, and certain amount for the furniture in it. Tan paid part of the sum and gave a promissory note for the balance. Tan occupied the house and had used of the furniture for several months. Later, Tan brought an action to have the contract rescinded and to recover the money he had paid to John.

Issue: Tan being a minor has no capacity to enter into contract. Can he repudiate the contract and recover the money that he had paid to John? Please state your reason.

Case 4

Mr. K, who is an electrician, rendered services to Mr. C. After completing the job order contract, Mr. K billed and sent charge invoice to Mr. C. When Mr. C learned that Mr. K is not a license electrician, Mr. C refused to pay the invoice. Mr. K then sued Mr. C for cost of his services.

Does the action of Mr. K prosper? Please state your reason in the context of capacity to enter into contract.

Case 5

M sells goods to a rogue, R. R obtained the title of the goods, despites his deceit intention. R appears to resell the goods to N, who is the innocent purchaser, and N obtained the title of the goods.

Issue: Is contract the void or voidable? Can M recover the goods from N? Please state your reason.

Case 6

Peter, who is a minor, hires a riding horse and promises to handle the animal with care, as the term of the contract stipulates. In his excitement, Peter injures the horse by riding it too hard. Queen, who is the owner of the horse, sues Peter for the breach of contract and tort of negligence.

Question: Does the action of Queen proper?

Case 7

The employment contract of Mr. A contained a clause that he would not work in competition with his employer in the city for two years after the termination of his employment. Without a cause, Mr. A was terminated for breach of employment contract. Mr. recovered the cost of damages for wrongful dismissal and began to work for a competitor company within the city. His former employer sought an injunction before the court to restrain him from working with competitor firm arguing that the two years period has not lapse.

Question: Does the action of the employer prosper?

Case 8 a case of a minor.

In early April of 1987, JE Dodson, then 16 years of age, purchased a used 1984 pick-up truck from Burns and Mary Shrader. The Shraders owned and operated Shraders Auto Sales. Dodson paid $4,900.00 in cash for the truck, using money he borrowed from his girl-friends grandmother. At the time of the purchase, there was no inquiry by the Shraders, and no misrepresentation by Mr. Dodson, concerning his minority of age. In December of 1987, nine (9) months after date of purchase, the truck began to develop mechanical problems. A mechanic diagnosed the problem as a burnt valve but could not be certain without inspecting the valves inside the engine. Since Mr. Dodson has no money for the repair, he continued to drive the truck despite of its mechanical problem until the trucks engine blew up and became inoperable. Mr. Dodson contacted the Shraders and wants to rescind the purchase contract of the truck and requested a full refund. The Shrader refused to accept the tender of the truck or to give Mr. Dodson the refund requested.

Issues: 1) Is Mr. Dodson entitled to a full refund of the money he paid? 2) Does the seller entitled to offset for the decrease in value of the pick-up truck while it was in the possession of the minor against the purchase price? Please state your reasons.