Question

13–1. Conditions of Performance. The Caplans contract with Faithful Construction, Inc., to build a house for them for $360,000. The specifications state “all plumbing bowls and fixtures... to be Crane brand.” The Caplans leave on vacation, and during their absence, Faithful is unable to buy and install Crane plumbing fixtures. Instead, Faithful installs Kohler brand fixtures, an equivalent in the industry. On completion of the building contract, the Caplans inspect the work, discover the substitution, and refuse to accept the house, claiming Faithful has breached the conditions set forth in the specifications. Discuss fully the Caplans’ claim.

13–8. Reformation. Dr. John Holm signed a two-year employment agreement with Gateway Anesthesia Associates, PLLC. During negotiations for the agreement, Gateway’s president, Dr. Jon Nottingham, told Holm that on completion of the contract he would become a partner in the firm and that during the term he would be paid “like a partner.” The written agreement did not reflect this promise—the contract read that Holm would be paid based on “net collections” for his services and did not state that he would become a partner. Later, Gateway told Holm that it did not intend to make him a partner. Holm filed a complaint in an Arizona state court against Gateway, alleging breach. Before the trial, Holm filed a motion to reform the contract to express what he had been told. Nottingham did not dispute Holm’s account. What is the basis for the reformation of a contract? Is it appropriate in this case? Why or why not?

14–4. Express Warranties. Charity Bell bought a used Toyota Avalon from Awny Gobran of Gobran Auto Sales, Inc. The odometer showed that the car had been driven 147,000 miles. Bell asked whether it had been in any accidents. Gobran replied that it was in good condition. The parties signed a warranty disclaimer that the vehicle was sold “as is.” Problems with the car arose the same day as the purchase. Gobran made a few ineffectual attempts to repair it before refusing to do more. Meanwhile, Bell obtained a vehicle history report from Carfax, which showed that the Avalon had been damaged in an accident and that its last reported odometer reading was that the odometer reading could be false and that the car might have been in an accident? Can Gobran avoid any liability that might otherwise be imposed because Bell did not obtain the Carfax report until after she bought the car? Discuss.

Answer 1

13-1:

The Caplans can't deny the home, but they will sue for negligible losses if the firm has built to specification the vast majority of the building, supplying the rest with an suitable alternative. Substantial Quality is called this. "Significant compliance In the case of significant fulfillment of the statutory obligation, failure to specifically comply with the conditions of a agreement does not preclude rehabilitation. The theory was established by the judiciary to discourage forfeitures and guarantee fairness. Where rehabilitation is required for significant results, damage to injuries sustained by inability to make maximum function is compensated. The theory was established by the courts to discourage forfeitures and guarantee justice. Where rehabilitation is required for significant results, damage to injuries sustained by inability to make maximum function is compensated. The courts decide if a violation or substantive infringement of a contract has existed by determining the intent to be served; the reason for divergence from the contract letter; and the injustice of compulsory obedience to the contract. Unless the divergence from the contract was unintended and resulting merely in a negligible discrepancy between what was expected by the contract and what was done, the claimant would only seek nominal damages.

13-8:

The reason for contract settlement is the parties' commitment to amend the deal. In this case, as Nottingham did not adhere to Holm's new contract proposal change, in this situation there was no compromise between the two sides. Often, violation of the initial contract must arise for contract reformation. Because there is no violation of the original contract in this case, because it has been specified that he will become a partner of the company after conclusion of the deal and that he will be compensated as a partner over the duration. Therefore, contract reformation can not be achieved in this situation, because all of these requirements have not been met and the initial contract terms have already been satisfied.

14-4:

There are usually 2 forms of warranties.

1. Express warranties: Express warranties are positive promises on the accuracy of the products sold. For example, if company claims watch is waterproof up to 250 m, express warranty would be given. Express warranties usually provide full product description.

2. Implied warranties: They are warranties provided by the customer. No written guarantees are issued for this. Therefore retailer should use "as is" to reduce the impact of the warranties inferred.

Already, in the present situation, when Charity Bell bought car from Awny Gobran's auto sales, reading the odometer indicated 147,000 miles. Hence car summary will be that it has been running for 147,000 kilometres. This is subject to express guarantees. Consequently Awny Gobran Auto Sales Inc. has infringed the pledge. The corporation is responsible for negligence.

In the second case, Charity Bell points out that in the crash, the car was destroyed when going through previous automotive records. Now, the car is fine and this will not be protected by car definition, which would result in this coming under implicit assurances. Although the phrase "As is" is included, the charity bell can not sue Awny Gobran car sales inc.

****Please please please LIKE THIS ANSWER, so that I can get a small benefit, Please****