The case involves property that changed hands twice. The Briggs purchased the house in the first instance and took a mortgage

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Chapter 14.2

The case involves property that changed hands twice. The Briggs purchased the house in the first instance and took a mortgage lasting 30 years to pay for it. Through an oral contract, the Briggs sold the house to the Sacketts after the latter agreed to service the mortgage. The Briggs changed their minds 15 years later, claiming the house was purchased fraudulently. Two issues arise in this scenario. The first one is whether the oral contract was valid. The second one is whether the Briggs can repossess the house after 15 years of occupancy by the Sacketts.

The oral contract is unenforceable in the first place because dealings in property should always be in writing as provided for by the law. It would be fruitless to pursue the matter in court. The Briggs could just be on the losing end. Secondly, the Sacketts having stayed on the property for 15 years surpassed the 12-year period of adverse possession. They occupied the house with full knowledge and consent of the Briggs. Due to the relationship between the parties, they would rather settle the matter out of court through either arbitration or other alternative dispute resolution mechanism.

Chapter 16.8

The scenario concerns two business entities that entered into a joint venture agreement to boost their sales and profits. Caliborne manufactured sportswear while Avon manufactured cosmetics. The joint venture agreement provided that Caliborne would market the name of the venture whereas Avon would manufacture the cosmetics in which the joint venture majored. After a two-year period of success and improved profit, Avon withdrew from the joint venture arrangement. Caliborne sued for specific performance.

The issue in this case is whether specific performance can be ordered where a joint venture agreement has been terminated. The answer is NO. According to the law, contractual obligations cease to exist after termination of a contract. A joint venture agreement is a contract. The order of specific performance is available where contractual obligations are still being executed. Termination of a joint venture agreement means that neither party is willing to continue performing its part of the obligations. The order, therefore, cannot be obtained from the court (Cooper Grace Ward Lawyers, 2014). Caliborne should sue for breach of contract and claim damages. These could include compensation for the loss suffered due to the withdrawal of Avon from the joint venture agreement and other special damages.

Chapter 18.2

This case involved a contract with a swimming pool specialist to install for Gulash an above-the-ground swimming pool in her backyard. Being a specialist, Stylarama, Inc. was in a better position to construct the swimming pool in the best standards possible. However, Gulash started observing faults in the swimming pool shortly after its completion. Their contract never provided for specifics, but merely the total cost of the contract including labor. She now wants to sue Stylarama for violating the provisions of Article 2 of the Uniform Commercial Code.

Article 2 of the UCC deals with the sale of goods. It provides for the essentials of a sale of goods contract, including offer, acceptance, obligations, breach, and remedies. The clause is specific in its definition of what constitutes a good. Precisely, goods are tangible and movable. Consequently, any dealing in property cannot be held as a dealing in goods. The swimming pool in this case is part of the property (that is, the residence of Gulash). It cannot be treated as a good under the UCC clause. Moreover, Stylarama was offering its services of construction. Dealings in services are not accommodated under article 2 of the UCC. Had Gulash brought the claim under article 9 of the UCC, she could have succeeded because this article provides for dealings in real property (Law Info, 2015).

Chapter 20.3

This case involved a contract to supply boxes for packaging tomatoes. International was the manufacturer of these boxes. Farrar, n packer and shipper of tomatoes, contacted with International to deliver these boxes. International made the offer through International’s agent, Wilson. Unfortunately, the boxes were faulty and could not perform the intended purpose. Farrar revoked the acceptance of the boxes, opting instead for different boxes to package and ship the tomatoes. International sued Farrar, claiming the latter had accepted the offer and cannot revoke it whatsoever.

The rules of revocation provide that the buyer is entitled to revoke where there is non-conformity in the goods (that is, the goods do not perform the function for which they were meant). In addition, the buyer must revoke within a reasonable time, probably after discovering the first instance of non-conformity. Farrar did exactly this. Upon discovering the fault in the boxes and the kind of damage they caused to the packaged tomatoes, Farrar notified International of the same and its revocation of acceptance. Farrar will succeed in the case. However, International should be given an opportunity to avail conforming boxes. This should be done at the fastest pace possible because tomatoes are perishable products.

Chapter 14.3

This case concerned the transfer of an employee to another branch of the company. Ohanian had recorded good performance in the previous branch and was unwilling to shift. However, the company promised him orally that his contract would never be terminated even when the new branch was performing poorly. Ohanian was persuaded by this promise and moved to the new branch. He recorded improved performance in the first years, but was later dismissed without good cause. He claims makes a claim under the oral contract and the company defends the claim on the basis of statute of frauds.

The statute of frauds prohibits an oral contract, which cannot be performed within a period of one year following its making. In the case of Ohanian, the dismissal was approximately one year after his employment. The statute of frauds made exceptions to the types of contracts it covers. Under lifetime contracts, performance is due within one year because the employee could die anytime. Therefore, Avis’ defense will not succeed on the premise of statute of frauds. Ohanian will win the case. The matter should better be arbitrated to come to an amicable conclusion.

Chapter 20.11

The case involves the sale of a house. The seller misrepresented that the house was in good condition. However, the buyers noticed defaults as soon as they took occupancy. The buyers contacted the seller to come and make amends for the same. However, the seller’s men came on several occasions, but they were unsuccessful. Four years down the line, the buyers opted to revoke the contract. The issue here is whether the revocation was done in an appropriate way and whether the seller’s conduct was ethical in the circumstances of the case.

Revocation should be done in a reasonable time, usually at the notice of the first instance of non-conformity. The buyers waited for a very long time – 4 years – and this denies them the capacity to revoke. However, ethics come in here. The seller is ethically bound to deliver conforming products to the buyer. The seller messed up in this, and should therefore compensate the buyers appropriately if they cannot make good repairs to the house.

References

Cooper Grace Ward Lawyers (2014). Can you seek specific performance of a clause in a

contract after termination? Retrieved 9 March 2015 from HYPERLINK “http://www.cgw.com.au/publication/can-seek-specific-performance-clause-contract-termination/” http://www.cgw.com.au/publication/can-seek-specific-performance-clause-contract-termination/

Law Info. (2015). What is Article 2 of the UCC? Retrieved 9 March 2015 from

HYPERLINK “http://resources.lawinfo.com/business-law/uniform-commercial-code/what-is-article-2-of-the-ucc.html” http://resources.lawinfo.com/business-law/uniform-commercial-code/what-is-article-2-of-the-ucc.html

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