Question

Assume Jinan University and an American Professor signed a contract for a summer business arrangement. In the contract, the professor promised to teach for the summer in Guangzhou, and in return, Jinan University promised to pay the professor $1 million. In preparation for the arrival of the professor, Jinan paid $20,000 for a fancy Guangzhou apartment for the professor. Jinan also bought $2,000 plane tickets, $500 in weekend tours, and $200 in equipment for the professor.

In addition, Jinan spent $12,000 in advertising, showing possible students that the professor was coming to teach. 500 students saw the advertising. Each paid $20,000 to Jinan to enroll. The students gave up the opportunity to attend a different program in Guangzhou. The other program would have cost each student $30,000.

All of the students fly to Guangzhou, spending $2,500 on airfare. Each also paid $10,000 for excellent apartments near the university. The university was ready to go.

Then the night before classes start, the professor calls and says he decided not to come. In the above story, who can sue whom? What will each party argue in each case? What legal concepts are involved from our class? Discuss how much (if anything) different parties would pay. Explain. Be thorough. Please also be specific.

Answer 1

Answer

(a). Jinan University may sue the American professor for breach of contract. Juan University may sue the American professor for breach of contract. There was an agreement and acceptance in which the professor agreed to teach for the summer in Guangzhou, and there was a consideration in which Jinan University promised to pay the professor $1 million. Signing the contract clearly showed the intention to create legal relations between the two parties. Jinan University is entitled to recover the following amount from the American professor for the breach of contract; $20,000 for a fancy Guangzhou apartment for the professor, $2,000 plane tickets, $500 in weekend tours, and $200 in equipment for the professor, as well as $12,000 in advertising, showing possible students that the professor was coming to teach.

(b). The students may sue Jinan University for breach of contract, and lost opportunity. The students may sue Jinan University for breach of contract. The agreement between the university and the students enrolled became legally binding when the students accepted the offer which had all necessary terms outlined, and made a consideration by paying the $20,000 for enrollment. As a result of the breach, each student will be able to recover; $20,000 for enrollment, $10,000 dollars in lost value on the basis that they gave up the opportunity to attend a different program in Guangzhou, $2,500 on airfare, and $10,000 for excellent apartments near the university.

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