Illustrations 206 instructors manual to accompany

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206           INSTRUCTOR’S MANUAL TO ACCOMPANY  BUSINESS LAW,  ELEVENTH EDITION 3. A promises B as follows:  “In consideration of your supplying my nephew C with china and earth en- ware during the coming year, I guarantee the payment of any bills you may draw on him on account thereof to the amount of $200.”  C is engaged in the business of selling such goods.  B sells C $2,000 of china during the year and draws bills for their price in varying amounts.  C pays $1,000 and then de- faults.  A’s promise is to be interpreted as a continuing undertaking, not limited to the first $200 of pur- chases. 4. A agrees with his divorced wife B and C, trustee, to pay to C $1,200 each year for the benefit of D, the 10-year-old son of A and B, until D enters college, and to pay $2,200 each year for the period of D’s higher education but not more than four years.  At age 19 D completes high school and is inducted into the army.   Upon a finding that the main purpose of the agreement is to provide for D’s maintenance and education, the agreement is to be interpreted as not requiring payments during D’s military service. d. Interpretation of the whole. Meaning is inevitably dependent on context.  A word changes meaning when it becomes part of a sentence, the sentence when it becomes part of a paragraph.  A longer writing similarly affects the paragraph, other related writings affect the particular writing, and the circum- stances affect the whole.  Where the whole can be read to give significance to each part, that reading is ] preferred; if such a reading would be unreasonable, a choice must be made.  See § 203.  To fit the im- mediate verbal context or the more remote total context particular words or punctuation may be disre- garded or supplied; clerical or grammatical errors may be corrected; singular may be treated as plural or plural as singular. Illustrations: 5. A written agreement between A and B for the exchange of real estate provides that A and B will each pay a $200 commission to C, a broker, “upon the signing of this agreement by both parties hereto.”  The last sentence of the agreement states, “The commission being due and payable upon the transfer of the properties.”  It is shown that A refused to sign the agreement until the last sentence was added.  The agreement is to be interpreted to make the commission due only when both the signing and the transfer take place.
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