chapter 10-13
To purchase a house, Clyde obtains a mortgage loan from Debit Bank. Clyde defaults on the payments on the loan. The bank has
the right to foreclose on the mortgaged property.
Under Chapter 13, a repayment plan must provide for
the same treatment of each claim within a particular class of claim.
Baez is employed by Credit Agency Inc. On the termination of Baez's position, Credit Agency pays Baez $10,000 to agree not to disclose the employer's confidential information. Later, Baez sells the information to Debt Records LLC for $100,000. In a suit for breach, Credit Agency is most likely to recover
$10,000 from Baez.
Rita contracts to work for Social Media Corporation (SMC) during April for $4,500. On March 31, SMC cancels the contract. Rita declines a job of a different type and rank with Tech Talk, Inc., which would have paid $3,500. Rita files a suit against SMC. As compensatory damages, Rita can recover
1,000
United Contractors Inc. holds a lien on Vista Estate's real property. This property can be sold to satisfy the debt if, before the sale, notice is given to
Vista Estate.
Fay offers to pay Grey $50 for a tennis lesson for Hetty. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have
a bilateral contract.
Howe downloads Instagram's app by clicking on the site's "I agree" link to its terms of service. Later, Howe reverse engineers the software to create a competing app. This is most likely
a breach of Howe's agreement to the terms of service.
Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is
a click-on agreement
State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is
a condition.
under chapter 7 and chapter 11
all of the choices
fez enters into a contract to buy 35o acres from grain farm to cultivate hops and open a brewery. fez fails to make the purchase. grain farms farms remedy is most likely
the difference between the contract and market price of the land
In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if
the fact is a serious defect known to Nan but not to Marc.
At the time of the filing of the petition and the time of the filing of the plan, Chapter 13 imposes on the debtor the requirement of
good faith.
equipment company holds a lien on fertile farms equipment. the equipment can be sold to satify the debt
if, before the sale notice is given to fertile farm
Reid agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reid promises not to open a similar, competing store anywhere. This promise is most likely
invalid because of the unreasonable terms of area and time.
Under the Bankruptcy Code, the means test is used to
keep higher-income people from abusing the bankruptcy process.
Field Construction Inc. contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of
legality.
on May, 1 raj offers to staff sams sandwhich shop with food preparers and server for a certain price and promises to keep the offer open until June 1. on may 3 raj mails sam a letter revoking the offer. Sam receives the letter on May 6. raj revocation of the offer became effective on
may 6
Ilene, an accountant, and Jerry enter into a contract under which Ilene agrees to perform audits for Jerry's Plastics Company. Ilene can delegate the duty to perform the audits to
no other party
Macy offers to sell his fitness watch for $50 to Nona. Nona promises to pay Macy the price. Later, they exchange the watch for the funds. A contract was created when
nona promised to pay for the watch
Under Chapter 11, the debtor's obligations most likely to be discharged are
none of the choices.
Under Chapter 7, once the proceeds have been distributed, the obligations of the debtor most likely to be discharged are
none of the choices.
Jill enters into a contract to buy a certain office building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jill should seek specific performance to
obtain the exact bargain promised in the contract.
Under Chapter 13, after the completion of all payments under the plan, the court will grant a discharge of
only the debts provided for by the plan.
Allen promises to pay Barb, his niece, $5,000 if she obtains her degree at City University, where she is in her third year. Barb graduates. Allen must pay Barb because
Barb obtained a degree at City.
Construction Company has a claim against Diners Café to satisfy a debt that takes priority over other claims against the same property. This is
a lien.
To purchase a house, Leo borrows funds from Metro Bank. The terms of the loan give the lender a security interest in the property being acquired by the borrower as security for payment of the debt. This is
a mortgage.
To purchase a house, Ethel obtains a mortgage loan from Fidelity Bank. Later, Ethel is unable to make payments on the loan. Meanwhile, the market value of the house has declined. Fidelity agrees to a sale of the property for less than the amount due on the loan. This is
a short sale.
To make a sale to Gourmet Inc., Hill Valley Commodities asks Gourmet's outside accountant Ina to co-sign a credit application. According to the terms, if Gourmet defaults, Hill Valley can look to her for payment without first pursuing legal remedies against Gourmet. Tina is
a surety.
Data Inc. offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is that
a unilateral mistake does not afford relief from a contract.
Under Chapter 7, a discharge is most likely to be denied if the debtor
all of the choices.
Compared to Chapter 7 and 11 plans, a Chapter 13 plan
allows a debtor to retain possession of his or her assets.
Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now instead of $5,000 later. This is
an accord and satisfaction.
Pastries Inc. sends Rollo its catalogue showcasing a variety of baked goods for certain prices. This is
an advertisement, not an offer.
Irma delivers her Jeep to be fixed at Kent's Auto Repair. Irma agrees to pay cash. Kent's performs, but Irma does not pay. Kent's keeps the Jeep until she pays. This is
an artisan's lien.
Luke puts his motorcycle up for sale via a post on an online auction site. This is
an invitation to negotiate, not an offer.
If a contract between two parties is avoided
both parties are released from it.
designed to penalize Metro.
constitutes tender of performance.
Metro Holdings Inc. contracts to sell a commercial parking garage to New Property LLC. The contract provides that if Metro does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is
designed to penalize Metro.
don enters into a contract to buy ezras office building for a certain price subject to an appraiser's evaluation of the structural condition. if the appraiser deems the condition to be substandard, the parties obligations will be
discharged
Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation and when present fails to adequately do her job. This
discharges the employer from the contract.
Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. With respect to the duties under the original contract, this transfer
does not relieve Bill of the potential obligation to perform.
under chapter 7, a creditors are paid in a certain order of priority. the highest- priority class comprises claims for
domestic support
Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,
efron understood the legal consequences
Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. Between Shipping and its customers, the Uniform Electronic Transactions Act applies if the parties agree to conduct transactions by
electronic means
Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement, repair, or refund of the purchase price. With respect to this provision, on a customer's suit for breach, a court is most likely to
enforce it.
Music Masters Inc. enters into a contract to pay Nagi for a dozen original songs. Nagi transfers the right to payment under the contract to Omni Artists. After the transfer, Nagi's contract right to the payment is
extinguished.
Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This does not require
performance of the original contract by all of the parties.
At Mattress Store, Nate signs a contract to buy bedroom furniture. The contract sets a schedule of $500 monthly payments, subject to a late fee of 150 percent. Nate finds the language of the contract difficult to understand. This is most likely
procedural unconscionability.
Repair Service enters into a contract to fix washing machines in Soapy Suds Company's coin-operated laundries. Repair breaches the contract. Soapy is awarded compensatory damages. The purpose is to
provide Soapy with funds for its loss of the bargain.
With respect to debtors, the main goal of bankruptcy law is to
provide a new start without creditors' claims.
Reese contracts to sell her spicy pizza restaurant to titian. as part of the deal, Reese agrees not to open competing for business within a hundred-mile radius for ten years. Reese later sues titian, alleging that the agreement is illegal. to enforce the covenant not to compete. the court will most likely
reform the contract to make the distance and time limits reasonable.
Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely
reform the covenant.
Steel Mill Inc. agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is
reformation.
Kent tries to start his car with no success. He yells that he will sell the car to anyone for $10. Livy, a passerby, hears Kent's yell. This is not an effective offer because it lacks
serious intent.
The roof in Rosalyn's house springs a leak. She contracts with Shelter Roofing & Restoration Company to repair the roof and fix the damage to the house. Rosalyn pays 10 percent of the price in advance. Shelter Roofing does the work, but Rosalyn refuses to pay the rest of the price. What can Shelter Roofing do, and how is it done?
shelters roofing can place a mechanics lien on rosalyns house
Erma enters into a contract to buy a tract of lakefront property from Forest Acres to build and sell a residential development. Forest Acres fails to close the sale. Erma's remedy is most likely
specific performance.
Donald is a minor. He can enter into any contract an adult can, provided
the contract is not one prohibited by law for minors.
Cindy, a real estate agent, sells her friend Doug's house without charging a commission. In return, Doug promises to give Cindy $1,000. This promise is not an enforceable contract because
the house has already been sold—the consideration is past.
restore inc contracts to resurface the pools at swim park by june 1. restore knows that if performance is not timely, swim park will have to delay its seasonal opening. restore finishes the job jun 15. in a sit for breach, swim park can recover
the loss pf profit from the delayed opening
Petro Refinery asks Quality Bank for a loan to increase its inventory. Quality requires Rose, Petro's president, to sign a personal guaranty to pay the debt if Petro defaults. Rose is a guarantor. The guaranty is required to be in writing because
the main purpose rule does not apply.
Big Dig LLC makes an offer to perform an excavation and related tasks for Commercial Development Corporation, but due to a substantial mathematical mistake, significantly underprices the work. Commercial accepts the offer. Data Big's best defense against enforcement of the contract is that Commercial knew
the price was below the prices of comparable services.
business software corporation sells business apps-wage price and inventory coordinating programs, for example, downloadable online. to complete a deal a purchaser clicks on a bottom that, with reference to certain terms, states " i agree" what is this agreement called? do the parties have a binding, enforceable contract that includes the terms? explain
this is a click on agreement, which occurs when a buyer, to complete a transaction on a computer, indicates his or her assent to be bound by the terms of an offer by clicking on a botton that says " iassent"
Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely
void
Under Chapter 7, the primary effect of a discharge is to
void a judgment on a discharged debt and prohibit an action to collect it.
Shuster's lease of retail premises from Thurgood requires Shuster to pay certain fees, subject to the landlord's proof of the correct amount. Thurgood overcharges Shuster for the fees, without explanation. Most likely, the tenant can rescind the lease
with prompt notice.
consolidated boring corporation ships its only pump to drills & bites inc... the manufacturer, for repair. consolidated hires everywhere shipping inc. to take the pump to drills & bits and to return it to consolidated as soon as the repair is complete. Consolidated is forced to suspend operations without a pump, but everywhere shipping does not know this. Consolidated expects to be without the pump for five days and to lose profit of 5,000. when the pump is not returned by the end of the fifth day. Consolidated rents a pump at cost of 100 a day before returning the pump. Consolidated files a suit against everywhere shipping. asking for compensatory conseqential and punitive damages. will Consolidated recover.
yes and no because Consolidated will succeed in recovering damages but not all of the damages that is seeking