Lana agrees to work as Michelle’s personal assistant for one year at a salary of $24,000. But Lana dies in the ninth month of the contract. Michelle hires a replacement who charges $30,000 to do the same job. Michelle sues Lana’s parents, who control the estate that Lana left behind, to recover the additional money she ended up having to pay as a result of Lana’s death. Discuss whether you think a court will require Lana’s estate to pay damages to Michelle. Why or why not? Porches & Verandas, Inc., agrees to build a screen porch for Quinn, but fails to complete the job. Quinn hires Ramadas, Inc., to finish the project. Explain how a court would calculate how much Quinn should be awarded if he sues Porches and Verandas.
Larue buys an iPod for $150 and a new laptop for $1,200, and signs a two-year employment contract for a $4,800 monthly salary to start at the beginning of the next month. Which of these three agreements Larue enters into needs to be in writing in order to be enforceable, under the Statute of Frauds?
Medical Eye Clinic Corporation enters into a contract with local musician Natalie, who agrees to perform for a meeting of Medical Eye’s personnel to be held in its main office building. Before the date of the meeting, Natalie refuses to perform, citing a higher-paying gig. Meanwhile, Medical Eye contracts to sell the building to Optical Center, Inc., but before the transaction is complete, Perfect Vision Company offers to pay a higher price. Medical Eye re­fuses to transfer the building to Optical Center. If Medical Eye sues Natalie and seeks specific performance, how will the court likely rule? Explain why.
Given the same facts if Optical Center sues Medical Eye and seeks specific performance, how will the court likely rule and why?
Junior owes his creditor Iba $1,000, which is due and payable June 1st. Junior has been in a car accident and missed a great deal of work, and consequently, will not have the funds available on June 1st. Junior’s father, Fred, offers to pay Iba $1,100 in four equal installments if Iba will discharge Junior from any further liability on the debt. Iba accepts. Is this transaction a novation or accord and satisfaction? Explain why.
In each of the following situations, certain events take place after contract are formed. Explain which of these contracts are discharged as a result of the events:
Jose, a famous singer, contracts to perform at your nightclub. He dies prior to the scheduled performance.
Ida contracts to sell you one thousand bushels of apples from her orchard in Washington. Because of severe frost, she is unable to deliver the apples.
Maxwell contracts to lease a service station for ten years. His primary income is from the sale of gasoline. Because of an oil embargo by foreign oil producing nations, gasoline is rationed and it cuts sharply into Maxwell’s sales. He cannot make his lease payments.
Greg contracts to sell his ranch to Marley, who is to take possession on June 1st. Greg delays the transfer until August 1st. Marley incurs expenses in providing for the cattle he had purchased for the ranch. When they made the contract, Greg had no reason to know of the cattle. Is Greg liable for Marley’s expenses for providing for the cattle? Why or why not?