law study guide-unit 2 - National Steel Inc and Overland...

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National Steel, Inc., and Overland Transport Company enter into a contract. Superior Oil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of privity. Jill and Kurt enter into a contract under which Jill agrees to pay Kurt $125 for a new briefcase. Kurt's transfer of his right to receive this payment is an assignment. Pat, a world famous musician and composer, agrees to give ten piano lessons to Quinn in exchange for $1,000. Pat's attempt to delegate his contract to Ruth, an inexperienced pianist, will probably be prohibited because Pat and Ruth have very different skill levels Uma makes a contract with Val with the intent to benefit Wat. This is a third party beneficiary contract. Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a different brand of discounted paint of the same quality. This is most likely substantial performance Jean contracts to sell her backhoe to Kyla for $2,000. Before performing, Jean and Kyla decide to cancel the deal. This is an example of a rescission. Diners Restaurant signs an agreement with Eagle Bank to borrow $10,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest from 15 percent. Diners' best argument for avoiding payment to Eagle is that the law has rendered performance of the contract illegal. Flo agrees to work as Gary's personal accountant for one year but dies in the sixth month of the contract. Flo's estate is discharged from any contractual liability. Kris contracts to work exclusively for Local Company during May for $5,000. On April 30, Local cancels the contract. Kris finds another job during May but earns only $3,000. Kris files a suit against Local. As compensatory damages, Kris can recover $2,000. Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pam buys the computer elsewhere for $6,500. Pam's measure of damages is $1,500 plus incidental damages. Outstate Properties, Inc. (OPI), agrees to sell certain acreage to Pia. OPI repudiates the deal. Pia sues OPI and recovers damages. Pia can now obtain nothing more. Carol pays Dick $10,000 for Dick to design an advertising campaign for Carol's health club. The next day, Dick tells Carol that he has accepted a job in New York and cannot design the campaign. Carol files a suit against Dick. Carol can recover $10,000. Loyal Engineers, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Loyal tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. The maximum that Loyal can recover is $10,000. Great Hardware Store agrees to hire Holly for one year at a salary of $500 per week. When Great
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This note was uploaded on 01/17/2013 for the course BIBI 111 taught by Professor Saxon during the Spring '13 term at Maranatha Baptist University .

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law study guide-unit 2 - National Steel Inc and Overland...

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