Question

In: Accounting

1 Ned threatens physical harm to force Omar to pay for “protecting” Omar’s restaurant, Pasta Plates,...

1

Ned threatens physical harm to force Omar to pay for “protecting” Omar’s restaurant, Pasta Plates, from vandalism. Most likely, Omar may

a.

do nothing once he has agreed to pay.

b.

recover from the local police for their failure to protect his restaurant.

c.

recover from his insurer for the cost.

d.

rescind the contract or refuse to comply with its terms.

2

Analytics LLC processes misinterpreted data furnished by Botch Services to propose a marketing plan for Clientele Inc. Analytics and Clientele are both ignorant of the mistaken data. Their contract can be rescinded on the basis of

a.

a mistake of quality.

b.

none of the choices.

c.

a unilateral mistake.

d.

a bilateral mistake.

3For a price, Rose agrees to unload the catch from fishing boats that dock at Seafood Shipping. Rose delegates this duty to Tina, who then owes performance of the duty to the warehouse. Tina is

a.

a third party beneficiary.

b.

the obligor.

c.

the delegatee.

d.

the obligee

a.

a third party beneficiary.

b.

the obligor.

c.

the delegatee.

d.

the obligee

4.

Beck and Call enter into a contract under which Beck agrees to cater Call’s wedding. The contract expressly prohibits any transfer of rights without the assignee’s consent. Call may transfer the right to receive Beck’s services to Dion

a.

if Call decides to use a different caterer.

b.

if Dion is also getting married.

c.

under no circumstances.

d.

if Beck consents.

5

Steel Mill Inc. and Transport Delivery LLC enter into a contract. UniOil Corporation will indirectly benefit from the deal. Under the principle of privity, UniOil has the right to

a.

none of the choices.

b.

require Transport to perform.

c.

demand performance from both original parties.

d.

sue Steel Mill for breach.

6

For a price, Recycle LLC agrees to empty the dumpster behind Sushi Café. Recycle delegates this duty to Trash Inc. Sushi is

a.

a third party beneficiary.

b.

the obligor.

c.

the obligee.

d.

the delegatee.

Beta contracts to design and deliver marketing materials to Cesar. Beta cannot delegate this duty to Devon

a.

under any circumstances.

b.

if the delegatee’s performance will match the obligee’s expectations.

c.

if performance depends on Beta’s personal skill.

d.

if special trust has not been placed in the obligor.

7

Trucking LLC enters into a contract to deliver a certain quantity of potatoes to United Foods’s refrigerated warehouse in exchange for a specified payment. Trucking delivers substantially all of the spuds to the location. United’s duty to pay is

a.

breached.

b.

performed.

c.

discharged.

d.

absolute.

7

Ghee agrees to buy Hole’s Donut Shop on the express condition that the shop’s suppliers extend the same credit terms to Ghee that the suppliers currently extend to Hole. This approval is

a.

a condition subsequent.

b.

an implied condition.

c.

a condition precedent.

d.

a concurrent condition

8

Jet enters into a contract to buy a certain commercial building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jet should seek specific performance to

a.

reform the contract to reflect the parties’ true intentions.

b.

return the parties to the positions they occupied before the contract.

c.

make the terms reasonable and enforce the contract as reformed.

d.

obtain the exact bargain promised in the contract.

Solutions

Expert Solution

The explanation and answer of the given questions are as follows:

1. Ned had threatens Omar for a contract that means he has obtained the contract with means of coercion,threat and undue influence, which means the contract is voidable at the option of Omar. He can choose to perform the contract with some consideration in return or can rescind the contract.

Answer is option D.

2 . Analytics LLP processed misinterpreted data which was for both the parties were ignorant about the mistakes in data itself it's a classic example of mutual mistake also termed as bilateral mistake. In this both the parties are ignorant about the fact.

Answer is Option D - Bilateral mistake

3. Rose has agreed to a contract and it has transferred it's obligation to Tina for the performance of his duty it's a delegation of the duty which makes Tina delegatee.

Answer is Option C - the delegatee.

4.Beck and call agreed for a contract which has specifically mentioned the terms that any rights of contract can be transferred with the concent of both the parties or the performing party. Thus for call to transfer the rights to Dion it has to get consent of Beck first.

Answer is Option D - Beck's consent.

5. Unioil is the third party beneficiary of the contract it has not been the parties under contract. Thus it will have no rights for the contract to be performed or of its benefits as the privity of contract is a common law principle which provides that a contract cannot confer rights or impose obligations upon any person who is not a party to the contract.

Answer is Option A- None of the choices.

6. The answer is option C - Obligee.


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