Business Law
Chapter End Questions
Chapter 12-12.1, 12.3 Chapter 13-13.4, 13.5, 13.7 Chapter 14-14.3, 14.5 Chapter 15-15.2, 15.3, 15.4
12.1 Jerome is an elderly man who lives with his nephew, Philip. Jerome is totally dependent on Philip’s support. Philip tells Jerome that unless Jerome transfers a tract of land he owns to Philip for a price 30 percent below market value, Philip will no longer support and take care of him. Jerome enters into the contract. Discuss fully whether Jerome can set aside this contract.
Yes, I believe Jerome can set aside the contract because it was formed under undue influence and duress. Since Jerome is totally dependent on Philip for his support and the contract benefits the guardian by being able to purchase the land for below market price – this makes Jerome feel obligated because he has no other recourse.
12.3 Larry offered to sell Stanley his car and told Stanley that the car had been driven only 25,000 miles and had never been in an accident. Stanley hired Cohen, a mechanic, to appraise the condition of the car, and Cohen said that the car probably had at least 50,000 miles on it and probably had been in an accident. In spite of this information, Stanley still thought the car would be a good buy for the price, so he purchased it. Later, when the car developed numerous mechanical problems, Stanley sought to rescind the contract on the basis of Larry’s fraudulent misrepresentation of the auto’s condition. Will Stanley be able to rescind his contract? Discuss.
No and Yes, Stanley cannot rescind the contract because he’s obtained a professional opinion on the condition of the vehicle who advised him of what could be wrong with the vehicle. Stanley still purchased the vehicle so he accepted the terms. Yes he can rescind because Larry may not know Stanley acquired a professional opinion so in theory he did not accept the terms.
13.4 On January 1, Damon, for consideration, orally promised to pay Gary $300 a month for as long as Gary lived,
Chapter 12-12.1, 12.3 Chapter 13-13.4, 13.5, 13.7 Chapter 14-14.3, 14.5 Chapter 15-15.2, 15.3, 15.4
12.1 Jerome is an elderly man who lives with his nephew, Philip. Jerome is totally dependent on Philip’s support. Philip tells Jerome that unless Jerome transfers a tract of land he owns to Philip for a price 30 percent below market value, Philip will no longer support and take care of him. Jerome enters into the contract. Discuss fully whether Jerome can set aside this contract.
Yes, I believe Jerome can set aside the contract because it was formed under undue influence and duress. Since Jerome is totally dependent on Philip for his support and the contract benefits the guardian by being able to purchase the land for below market price – this makes Jerome feel obligated because he has no other recourse.
12.3 Larry offered to sell Stanley his car and told Stanley that the car had been driven only 25,000 miles and had never been in an accident. Stanley hired Cohen, a mechanic, to appraise the condition of the car, and Cohen said that the car probably had at least 50,000 miles on it and probably had been in an accident. In spite of this information, Stanley still thought the car would be a good buy for the price, so he purchased it. Later, when the car developed numerous mechanical problems, Stanley sought to rescind the contract on the basis of Larry’s fraudulent misrepresentation of the auto’s condition. Will Stanley be able to rescind his contract? Discuss.
No and Yes, Stanley cannot rescind the contract because he’s obtained a professional opinion on the condition of the vehicle who advised him of what could be wrong with the vehicle. Stanley still purchased the vehicle so he accepted the terms. Yes he can rescind because Larry may not know Stanley acquired a professional opinion so in theory he did not accept the terms.
13.4 On January 1, Damon, for consideration, orally promised to pay Gary $300 a month for as long as Gary lived,