Business Law 5

Real Quick Food Inc. and Spud Farm discuss periodic deliveries of potatoes. Despite the absence of an invoice or other writing evidencing the terms of a deal, Spud begins to perform, and Real accepts the deliveries but refuses to pay. As a contract, this arrangement is most likely enforceable against

Spud and Real, at least to the extent of the performance.

Solar Power LLC and Trey enter into an oral contract under which Solar agrees to provide Trey with lifetime employment. This contract may be enforceable by

either Solar or Trey.

Maya and Nick enter into a contract. To be enforceable, the contract must include

the signature of the party against whom enforcement is sought.

Lew tells a representative of Music Inc. that he will pay for Nora’s trumpet if she does not. Lew does not secure any personal benefit for this promise. This promise is enforceable as a contract

only if it is in writing.

Rye agrees to sell his Taco Delight restaurant to Sati. The parties intend their written contract to be a final statement of the terms of their agreement. Later, the parties dispute some of the provisions. In litigation, Sati offers evidence to contradict the written terms. Most likely, the court will

exclude the evidence.

Builders Corporation files a suit against Concrete Company to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove

an orally agreed-on condition.

Oscar orally agrees with Poppy’s Pizza to provide delivery service to its customers for nine months. This contract is enforceable by

either Oscar or Poppy’s.

Elena offers to invest a certain amount in Fran’s business if Fran marries Elena’s son Glen. This promise is enforceable

only if it is in writing.

Quinn and Ruth orally agree on the sale of Seafood Shippers Inc. and jot down the terms on the back of one of Seafood’s blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

the essential terms.

According to most states’ laws, to be enforceable as a contract under the Statute of Frauds, a writing must

name the parties.

Range Free Farms enters into a contract to sell Sara’s Market a truckload of eggs. Range Free fails to deliver. Sara’s Market

does not have to pay for the eggs because Range Free did not perform.

Bottling Company enters into a contract with Chug’s Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug’s that due to the added cost it will not perform their deal. Bottling’s contractual obligation to Chug’s is

breached.

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Café LLC. If Restoration completes most of the work promised in the contract, its performance will be

substantial

City Delivery, Inc., enters into a contract to deliver furniture to Damien’s house with payment due on July 4. On July 4, Damien’s bank is closed, and for this reason, he claims that he cannot pay on time. In this situation

the contract is suspended.

Iggy and Jon sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jon’s promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of

concurrent conditions.

Build-It Construction LLC contracts to build a warehouse for Corporate Storage Inc. Corporate does not have to pay Build-It if the warehouse is not built. Their respective promises are

conditioned on Build-It’s performance.

Business Center signs an agreement with Credit Lending Inc. to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. The borrower’s best argument for avoiding payment to the lender is that

the law has rendered performance of the contract illegal.

Gliders, LLC, and Hang Time, Inc., are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders’ place and assume all of its rights and duties under the contract. This is

a novation.

Discharging a contract by executing a new agreement with performance different from what was originally promised is

an accord and satisfaction.

Vera enters into a contract to work as a lifeguard at Water Park for the summer in exchange for a weekly paycheck. The duties under this contract will be discharged when the duties are

performed