BUS311_chapter_06

Why does the law allow contracts to be assigned even

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Unformatted text preview: e court refuse to help Campbell in enforcing its legal contract? How could Campbell change its contract in the future so as to avoid the unconscionability problem? 10/26/12 5:37 PM Section 6.4 Chapter Summary CHAPTER 6 Critical Thinking Questions 1. Why does the law allow contracts to be assigned, even in many situations where the contract itself says it is nonassignable? 2. Why are contractual duties freely delegable? 3. Explain how a new agreement between the parties can rescind a contract. Hypothetical Case Problems Case 1. Danielle contracts to sell her car to Benito for $7,000, but she specifies that he should pay the money directly to Commercial Credit Inc., because Danielle owes them money and she’s afraid she might be too tempted to go on a shopping spree if Benito gives her the cash. A. Is this an assignment or a third-party beneficiary situation? B. If Benito forgets and sends the money to Danielle, will he be liable to Commercial Credit? Case 2. Jessica, famous sexy rock star, contracts to perform at Bill Billionaire’s New Year’s Eve party for $100,000. Jessica now assigns the contract to Ozzie, an aging heavy metal artist. A. Must Bill accept the assignment? B. Who will perform at the party? C. Would Jessica be able to delegate the contract to another sexy female singer, Brittany? Case 3. ABC Co. orders a selection of standard office furniture from Woodworkers Inc. Woodworkers determines it cannot fulfill the contract in timely fashion, and delegates to another firm, Fab Furniture. A. If Fab Furniture builds the furniture as specified in the contract, does ABC have to accept and pay for it? B. If Fab Furniture breaches, can ABC sue Woodworkers? C. If ABC had contracted with Woodworkers because the firm was famous for its cutting-edge, avant garde furniture design, would the delegation still be valid? Case 4. Deon’s Ferrari is insured by the Acme Insurance Company. The policy states that for a loss to be covered, it must be reported within 30 days of the dama...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

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