BLAW 341 Exam 2 Hypotheticals (Maull)

Bobby agrees to deliver a new copy machine to Cassie's office building, and she agrees to pay for the delivery "if the delivery is done to my officer manager Tyler's satisfaction". An independent inspector concluded that Bobby did an excellent job, but Tyler is super picky and not satisfied. Cassie fails to pay for the delivery and Bobby sues Cassie. Which statement would be the outcome in the majority of jurisdictions? (delivery is not personal in nature)

The court will apply a reasonable person standard and likely conclude that Bobby discharged his contractual duties-Cassie must pay.

Ironman Inc. sponsors a triathlon race and advertises a prize of $50,000 to the winner. Bruce enters the competition and wins, but Ironman Inc only pays him $10,000. Did Ironman breach a valid contract with Bruce?

Yes

Emma needs an accountant to complete her tax returns. She visits the office of an accountant, explains her situation, and asks the accountant's fee. Emma does not ask the accountant to complete her tax return, but Emma returns to the accountant's office the next day, says nothing, but drops a large stack of tax related documents and receipts on the accountant's desk. Emma then leaves. Has Emma entered into an implied contract to pay the accountant the usual fee if the accountant completes the tax return?

Yes

Ann makes water heaters. Bill owns a water heater delivery and installation service. Bill forms a contract with Ann to purchase a water heater. Bill picks up the water heater from Ann's water heater store and delivers and installs the water heater in a building owned by Cindy. Bill never pays Ann for the water heater. Cindy has been unjustly enriched. Can Ann sue Cindy for breach of contract or breach of quasi contract (ie. will the court impose a quasi contract on the parties so Ann can recover against Cindy under a theory of unjust enrichment)?

No, Ann and Cindy have never met

Janine is brought into the hospital unconscious. The hospital ordered 24 hour nursing care from Nursing Services Inc, Janine remained unconscious and under nursing care for 10 days. When she awoke, Janine stated that she would not pay the bill for her nursing care. Which of the following is the court likely to determine exists:

Implied in Fact Contract or Quasi Contract (implied in law)

Quasi Contract (implied in law)

Norman rented an apartment from Ted. Ted gave Norman a written lease, and Norman signed the lease. However, Norman never read the lease before he signed it. The lease states Norman must pay rent by the first of each month; and if he fails to do so, Ted is immediately entitled to the value of ALL rent remaining under the lease. Norman missed a payment and Ted has sued for immediate payment of the remaining months rent. Can Norman claim that he did not read the lease as a defense to the lawsuit?

No, it was his fault that he did not read the lease before he signed it.

Sally is building a house. She has asked contractors to submit bids for the work. Which of the following statements is correct?

A. Sally's Invitation to contractors to submit bids is valid offer, and the first contractor to submit a bid will be deemed to have accepted her offer;

B. The bids each contractor submits are offers, and Sally can bind a contractor to a bid by accepting a contractor's offer

B. The bids each contractor submits are offers, and Sally can bind a contractor to a bid by accepting a contractor's offer

True or False: Most advertisements are treated as "invitations to negotiate" and, as such, are NOT considered "offers"

True

A customer at Six Flags amusement park nearly drowned on a water ride. Six Flags believed the ride had a design defect and wanted the ride manufacturer's insurance company to defend Six Flags in court against the customer's personal injury suit. Although Six Flags and the ride manufacturer had never entered a formal contract for ride construction, they HAD engaged in preliminary negotiations, faxed ride specifications, began construction, and hand wrote notes on the fax. What did the court hold?

Court held that evidence showed parties' INTENT to be bound by their initial agreements.

Termination of offer

September 15→ sally made offer

October 1→ sally mailed revocation (through USPS)

October 2→ Joe accepts Sally's september 15 offer

October 4→ Joe receives Sally's revocation

On October 4th do Sally and Joe have a valid contract?

Yes

What if the offeree's response to the offeror's offer CHANGES A MATERIAL TERM of the original offer?

the offeree's change will be a deemed a counter offer, NOT an acceptance

Mary offered to babysit for Ron's children for 2 hours at a rate of $10 per hour. Ron stated he wanted Mary to babysit for 2 hours, but would pay her $12 an hour. Ron's statement is an example of an

Counteroffer (terminates her original offer)

Accountant Nick offers to complete Emma's tax return in exchange for $600. Emma sends Nick an email that states, "I accept. Please send a written contract." Has Emma accepted the contract?

Yes

Accountant Nick offers to complete Emma's tax return in exchange for $600. Emma sends Nick an email that states, "I accept, IF you send a written contract." Has Emma accepted the contract?

No

Brown (buyer) presented Lagrange (seller) with a written offer to buy a house. Lagrange penciled in modifications to the offer- an increased purchase price and a date change, initialed the changes, signed the document, and sent the revised document to Brown. Brown initialed the date change, but not the price increase. Brown used the document to apply for a mortgage, agreed to closing, and accepted a deed from LaGrange. However, Brown did not sign the document. When LaGrange asked Brown to pay, Brown filed suit claiming she had not agreed to the increased price. Was Brown's conduct sufficient to constitute acceptance of LaGrange's counteroffer?

A. No, because Brown only initialed the date change and did not sign the counteroffer;

B. Yes, because Brown's conducts was sufficient to show agreement, and LaGrange's offer did not restrict the method of acceptance

B. Yes, because Brown's conducts was sufficient to show agreement, and LaGrange's offer did not restrict the method of acceptance

Offeree sends acceptance by mode/method that accomplishes the same purpose as that specified, then acceptance is effective but only at the time offeror receives the acceptance. What if the offer does NOT specify a particular mode/method of communication of acceptance?

any "reasonable means" of communication is ok under the circumstances

On october 1, Sam offers to create a business plan for entrepreneur Jonas in exchange by which Jonas should accept the offer. Jonas places a written acceptance in the mail on Octover 17. Sam receives the acceptance on October 20 as of which date is the contract valid?

A. October 17 when Jonas SENDS the acceptance

B. October 20 when Sam RECEIVES the acceptance

A. October 17 when Jonas SENDS the acceptance

what types of contracts can be either completed in "hard copy" format or as an e-contract (online)?

Purchasing a good

Purchasing a service

Purchasing a license to use product

All of the above

All of the above

when you pay for and download an iTunes song or a software program you are (choose the correct answer):

Purchasing a good

Purchasing a service

Purchasing a license to use the product

Purchasing a service AND Purchasing a license to use the product

Online university advertised that candidates who earned a doctorate in psychology through its online program would be qualified to apply for a job as a clinical psychologist in the US military. Student who wished to be a psychologist saw the advertisement and enrolled in an Online University's program. Student completed her enrollment online and the "terms and conditions" states "in the event a dispute about enrollment in the program arises between online university and student, parties agree to enter arbitration in San diego, California." The enrollment application webpage also included a "click-on" box that stated, "By clicking 'I agree' the applicant agrees she has read, understood, and agreed to right and responsibilities set forth in the application. If a student filed a lawsuit in New York and Online University filed a motion that asked the court to dismiss the case, which party would win the motion?

Online University

Are "browse wrap" terms displayed only via a hyperlink at the bottom of a webpage which the user does not have to "click" to use the website enforceable or unenforceable against the buyer/user of a website as binding contract terms?

Not fully enforceable

Bill sent Mary a written offer via the USPS. Mary "accepted" by scanning the document and adding a digitized version of her signature. Mary and Bill had not discussed exchange of electronic signatures. Under E-SIGN, if Bill fails to fulfill his promises under the offer, can Mary sue Bill for a breach of contract? (ie Have Bill and Mary entered into a valid contract?)

No

Seller promises to ship 1000 plastic cups. Buyer promises to pay $200. Does "consideration" exist to support a contract between buyer and seller?

Yes

Father states to his son, "In consideration of the fact that your 18th birthday is next week, I will buy you a car" Have the father and son entered into an enforceable contract? (has valid consideration been given? Is there any "bargained-for" exchange?)

No

Spotlight case example 12.5: philadelphia 76ers basketball star Allen Iverson and friend's claim to share of profits on "The Answer" merchandising

His friend suggested long before he was famous, his friend told him he should call himself "The Answer" when he is famous. Years later he is famous and he promises 25% of the profit to his friend who suggested this nickname when he uses it on his merchandise. His legal team told him he cannot do this so he went to his friend and took it back and the friend sued him for Breach of Contract. How did the court rule?

The court ruled that he did not break a contract because it was in the past (aka past consideration). Had the friend done something for him in the present, it would have been different.

If something happens in the PAST it is past consideration.

Kara's car is damaged in an accident caused by Raoul's negligence. He offers to give Kara $3000 IF she will release him from all further liability. Kara accepts the $3000 and signs a release but later learn her repairs will cost $4200. In most states, can kara collect the addition $1200 from him?

No

details: Mary is 80 years old and cannot afford retirement. Dick, her boss, agrees to pay Mary $1000/week so she won't have to work anymore. He continuously promises her this and she warns him that she will do it, file for a new place to live and get a new car because of her retirement. Dick agrees and promises so Mary quits her job. THEN Dick decides to not pay for her after she already did all these things. Is this valid consideration?

No, but promissory estoppel DID occur

Alice promised to give $5000 per year to the American Red Cross (Charity) Can they claim promissory estoppel?

Yes

When Cassie was 17, she entered into a contract with Dan to purchase a computer. It is now one week after Cassie's 18th birthday. Can Cassie disaffirm her contract with Dan?

probably yes

Reilly, an adult, entered into a lease of band equipment (guitars, drums, etc) with a group of musicians, all of whom were 15 years old. Reilly, however, has just learned about problems associated with contracts with minors, and Reilly wants to disaffirm the contract. Would a court permit Reilly to disaffirm the contract?

No, only minors can disaffirm the contract

Joe bought a car from Stan's Toyota dealership. Joe has never been declared incompetent, but at the time he purchased the car, Stan noticed Joe was talking to "friends" in his head. Joe also seemed to carry on conversations with invisible entities, struck out violently with his hand aiming at nothing, and appeared agitated and "odd". Joe was later diagnosed with schizophrenia. Is it likely that Stan's contract with Joe is voidable?

Yes

Improv Assoc. granted Comedy Club an exclusive license (a contract) to open four Improv Clubs per year in 2001, 2002, and 2003. The agreement included a covenant not to compete that stated if Comedy Club breached the contract, Comedy Club would not open any comedy venues in the contiguous 48 states for 14 years from the date of contract termination.Comedy Club failed to open the required number of clubs in years 2001 and 2002 (needed to open 8, but did not), so Improv terminated the contract. If Comedy Club sues Improv and claims the covenant not to compete ("non-comp" clause) was not reasonable, who would win?

Comedy Club because it was an unreasonable amount of time

The state where Tyson lives requires all accountants to be licensed by the state. Joe said "Tyson, I am a licensed accountant in your state," but this was a lie. (Tyson did nothing more to verify Joe's accounting license). Tyson hired Joe to do accounting work and asked Joe to complete and file Tyson's currently due tax return. Joe failed to file Tyson's tax return. Considering the "general rule" in the previous slide, can Tyson sue Joe for breach of contract.

No. If you do business with someone who is unlicensed, it is illegal and therefore unenforceable

Xin intends to sell her motorhome for $17,500. She sends Devam an email offering her motorhome for sale, but she mistakenly types $15,700 as her price. (This is the first time Xin has supplied Devam with information on the sale price) Devam reads Xim's email and immediately accepts. Is the Xin bound to the contract (is the contract enforceable)?

Yes

Xin intends to sell her motorhome for $17,500. Xin and Devam discussed this price. After their discussion, Xin sends Devam an email offering her motorhome for sale, but she mistakenly types $15,700 as her price. Devam immediately accepts. Is Xin bound to the contract (is the contract enforceable)?

No

Dru is a contractor. He has submitted a bid to Candace for the construction of a pool, but he made a few mathematical errors when he totaled his estimated costs. Because of these errors, Dru's bid is about $75,000 lower than his actual estimated costs. If Candace accepts Dru's offer, can Dru later rescind the contract?

Yes

Joe is selling his home "FSBO" (for sale by owner). Mitsy is interested in purchasing the home. The roof of the home has missing shingles, has obviously rotted sections, and the interior walls and ceiling of the home are water stained beneath the areas where the roof is in despair. Joe knows the roof has leaked, but Mitsy never asks Joe about water leakage or roof issues, and Joe does not mention the leak to her. If Mitsy buys the home and later learns of the leaky roof, could she claim Joe's silence constituted fraudulent misrepresentation and avoid/rescind the contract?

NO! This was an open and obvious defect (she didn't see the leaking and that was her fault)

Joe is selling his home "FSBO" (for sale by owner). Mitsy is interested in purchasing the home. She specifically asks him if the roof has ever leaked and he lies and says no! If she buys the home and later learns about the leaky roof, can she claim fraudulent misrepresentation?

Yes

Rupert is 95 years old, in a weakened mental state, and bedridden. He requires assistance with most of his daily activities. Rupert's niece and nephew, with whom he was never particularly close, have been living with him for the past 5 months and have not permitted any of Rupert's actual family members to visit. Last week, Rupert gave his niece and nephew a very large financial gift, made them his sole heirs, and gave them powers of attorney. Rupert was not represented by legal counsel, and Rupert's grandchildren contest the actions Rupert has taken. (The grandchildren were Rupert's heir under his "old" will.)If Rupert's grandchildren challenge the gift to Rupert's niece and nephew, is it likely that a court would hold that the niece and nephew exerted undue influence over Rupert?

Probably yes

If you do not sign this contract, I will disclose embarrassing information about you to the press. Is is this duress?

Yes

If you do not sign this settlement agreement, I will sue you in court. Is this duress?

No

On April 15 Chris speaks with the director of Mountain Top Camp over the phone and agrees to send her daughter Elizabeth to summer camp from July 5-17, 2021. Chris also agrees to pay Mountain Top no later than June 15, 2021. Chris agrees to pay $1500 and Mountain top reserves a spot for elizabeth. If Chris backs out of this oral agreement, will the Statute of Frauds bar Mountain top from enforcing the contract

No, this contract falls outside the statute of frauds

In January 1, 2021 Jonas agreed with Piper to give her guitar lessons from May 1, 2021-Feb 1, 2022. In return, Piper agrees to pay for one lesson per week at a cost of $30 per lesson for the period stated in the contract. Does this contract fall under/within the Statute of Frauds (i.e. must this agreement be in writing to be enforceable)?

Yes

The firm of Happy Valley Real Estate Developers orally contracts with Serenity Landscaping to landscape all future housing development projects "as long as Happy Valley Real Estate is headquartered in State College" the contract also contains definite payment terms. If happy valley real estate developers remain in state college, but stop using serenity and hire rock landscaping instead, can serenity enforce their oral agreement with happy valley?

A. Yes, the oral agreement is enforceable—the Statute of Frauds does not apply;

B. No, the oral agreement is NOT enforceable—the Statute of Fraud applies.

A. Yes, the oral agreement is enforceable—the Statute of Frauds does not apply

On August 1, 2021 Al and Ben enter into a contractual agreement whereby musician Al agrees to play the piano at Bens party on Nov 5, 2021 and Ben agrees to pay Al $1500 by Nove, 1, 2021 to cover all expenses. Carol (ben's mother) agrees to pay Al the $1500 if Ben fails to pay by Nov 1. Must Al and Ben's agreement be in writing (does the Statute of Frauds apply to their agreement?)

No

Gabby owns a factory that makes cameras. She buys lenses for her cameras from Optics Group. Optics Group purchases glass supplies to make lenses from Liquidia. Optics Group has been struggling financially, and Liquidia has threatened to sue Optics Group for unpaid bills. Gabby has entered into an agreement with Liquidia to act as a guarantor for Optics Group’s  debt. In return, Liquidia has agreed to forestall litigation.  Must the agreement between Gabby and Liquidia be in writing to satisfy the Statute of Frauds?

No, the main purpose rule operates as an exception to the statute of frauds.

joe entered into a contract with Cookie to perform personal security services for Cookie for the next 6 months. In exchange, Cookie agrees to pay Joe $60,000 and her financial manager tells Joe, "I will pay you for the security work". Is this within the statute of frauds? (in writing required?)

Outside Statute of Frauds and does not need to written (oral allowed)

Joe entered into a contract with Cookie to perform personal security services for Cookie for the next 6 months. In exchange, Cookie agrees to pay Joe $60,000 and her financial manager tells Joe, "I will pay you for the security work IF cookie fails to pay" Is this within the statute of frauds? (in writing required?)

Falls under Statute of Frauds, MUST BE IN WRITING

Fido Smiles Pet Foods Inc entered into an oral agreement with Nittany kennels. Under the terms of the oral agreement, Fido Smiles agreed to supply Nittany Kennels with 200 pounds of dog food per month for the next two years and Nittany Kennels agreed to pay $100 per month for the service. During the first 6 months of their agreement, Fido Smiles sent 200 pounds of dog food each month (total of 1200 pounds). Nittany Kennels accepted these 6 shipments; however at the end of month 6, Nittany Kennels had not yet paid Fido Smiles for any of the dog food. Can Fido Smiles sue Nittany Kennels for breach of contract?

YES, the oral agreement is enforceable because partial performance occurred (they accepted the shipments!)

Tina, a hair product manufacturer, has taken hair salon owner Jimmy to court in an attempt to enforce an oral agreement in which Tina claims he agreed to pay her $10,000 for 7500 units of hairspray. Jimmy initially denies that he orally entered into an agreement with her to pay $5,000 for the hair spray. Under the UCC, what is correct?

The court will enforce the oral agreement for $5,000 because there is no written contract and he admitted under oath that there IS a contract between them so they will believe him

Home mortgage lenders (HML) filed a suit against Erica to foreclose on a mortgage. (Erica had used the mortgage to secure a loan from HML for $50,000. Under the terms of this agreement, if Erica failed to repay the $50,000, HML could foreclose on the mortgage and repossess her home) HML had a copy of the mortgage load agreement identified Erica as the party who owed the debt, but she had not signed the document. If HML tries to sue her, will the agreement be enforceable in court?

No, she did not sign it

Vic wants to buy a car. He doesn't have enough money to pay in cash so he takes out a load from Nittany bank. Vic and the bank have entered into a loan contract. Nittany bank transfers/assigns its right to receive Vic's payments to PNC Bank - this is an ASSIGNMENT. Who is the obligor? The obligee? The assignee?

Obligor = Vic

Obligee = Nittany Bank

Assignee = PNC Bank

On Nov 1, Susie borrowed $1,000 from Wes to purchase a computer. Susie agreed to repay Wes the principal plus 5% interest in equal installments over the next 6 months. On Nov 10, Wes assigned his right to receive payment to Steve. Steve never sent Susie notice of this assignment. On Nov 15, Wes assigned his right to receive payment to Kyle. Kyle sent Susie notice of the assignment on Nov 20. As of Nov 25, under the priority rule applicable in the majority of jurisdictions (first in time, first in right), who has priority to receive payment from Susie?

Steve

On Nov 1, Susie borrowed $1,000 from Wes to purchase a computer. Susie agreed to repay Wes the principal plus 5% interest in equal installments over the next 6 months. On Nov 10, Wes assigned his right to receive payment to Steve. Steve never sent Susie notice of this assignment. On Nov 15, Wes assigned his right to receive payment to Kyle. Kyle sent Susie notice of the assignment on Nov 20. As of Nov 25, under the priority rule applicable in the MINORITY OF JURISDICTIONS (first to give notice), who has priority to receive payment from Susie?

Kyle

On Nov 1, Susie borrowed $1,000 from Wes to purchase a computer. Susie agreed to repay Wes the principal plus 5% interest in equal installments over the next 6 months. On Nov 10, Wes assigned his right to receive payment to Steve. Steve never sent Susie notice of this assignment. On Nov 16, susie sent her monthly payment to Wes. Did this payment discharge Susie's monthly obligation to Steve under this assignment?

Yes, she was never notified

On Nov 1, Susie borrowed $1,000 from Wes to purchase a computer. Susie agreed to repay Wes the principal plus 5% interest in equal installments over the next 6 months. Payment was due on the 10th of each month. On Nov 5, susie delegated to lauren the duty to pay Wes. As of Nov 12, Wes had not received payment. If Lauren fails to pay Wes, who would Wes sue?

Susie and/or Lauren

Val's Foods signs a contract to buy 1500 pounds of basil from Sun Farms, a small organic herb grower, as long as an independent organization inspects the crop and certifies that it contains no pesticides or herbicide residue.

The condition imposed by this contract is a

Conditions Precedent

Dana has a homeowner's insurance policy with Geico. The policy states that the homeowner has 12 months from the date of any loss to make a claim against Geico. Dana's house is destroyed by fire. 13 months later, Dana makes a claim against Geico. Which of the following correctly characterizes the type of condition that appears in this contract?

Conditions Subsequent

Peter agrees to sell his textbook to Eve for $20. Eve agrees to buy the book for $20 on Friday when Peter delivers the book. Which type of condition?

Concurrent Condition

Tim promises to fully restore Jane's antique car. The car includes a flat spare tire. In exchange, Jane agrees to pay $12,000. Tim restores and delivers the antique car but fails to fix the spare tire. The cost of repair to the spare tire is $25. If Jane sues Tim for breach of contract, is it likely that a court will determine that Tim substantially performed his duties under the contract

Yes, the breach was likely not material, and Tim substantially performed his obligations imposed by the contract. She could still sue for breach cause substantial performance is not strict performance.

Tim promises to fully restore Jane's antique car. The car includes a flat spare tire. In exchange, Jane agrees to pay $12,000. Tim restores and delivers the antique car but fails to fix the spare tire. The cost of repair to the spare tire is $25. If Jane sues Tim for breach of contract and the court determined Tim substantially performed his obligations under the contract, what damages is Jane likely to be awarded?

The cost of fixing the spare tire!!

Andy agrees to paint a portrait of Brooke for $1500. The terms of the agreement state that Brooke is only obligated to pay if she is entirely satisfied with the portrait. Andy paints a portrait that is highly acclaimed as a masterpiece by art critics, but Brooke does not like the painting. Must Brooke accept and pay for the painting?

No, Brooke is not required to accept and pay because the subject matter of the contract is personal and under the terms of the contract Brooke may reject the painting if she is subjectively not satisfied.

Bobby agrees to deliver a new copy machine to Cassie's office building, and she agrees to pay for the delivery "if the delivery is done to my officer manager Tyler's satisfaction". An independent inspector concluded that Bobby did an excellent job, but Tyler is super picky and not satisfied. Cassie fails to pay for the delivery and Bobby sues Cassie. Which statement would be the outcome in the majority of jurisdictions? (delivery is not personal in nature)

The court will apply a reasonable person standard and likely conclude that Bobby discharged his contractual duties-Cassie must pay.

Shasta Corp. manufactures computers. Shasta enters into a contract with new age retailers to manufacture and sell 100,000 computers to new age. Delivery is to occur in 2 months. One month passes, and several of shasta's part suppliers have dramatically raised prices. Shasta knows it will lose $500,000 on the contract with new age, so shasta writes new age and states that it cannot deliver the computers at the current contract price. Which of the following is correct

new age may immediately sue shasta

In 2015 Val's foods signed a 5 year contract to buy 1500 pounds of basil per year from Sun Farms, a small organic herb grower. In 2016 Sun Farms agreed to sell its operations to Happy valley farms. As part of the sale, Sun Farms, happy valley farms, and val's foods agreed that happy valley farms would provide basil as stated in the original val/sun farms contract. What is the type of agreement called?

novation

Val's foods signs a contract to buy 1500 pounds of basil from sun farms, a small organic herb grower. ( sun farms entire crop was estimated at 1500 pounds). The contract specified that the basil crop must have been grown on Sun Farm's land. The day before Sun Farms was to begin the harvest, a giant hailstorm destroyed half the crop. If Val's Foods sues sun farms in court for full performance of the contract, which of the following arguments might sun farms assert to claim its duties have been discharged by operation of law?

Impossibility of performance

Val's foods signs a contract to buy 1500 pounds of basil from sun farms, a small organic herb grower. ( sun farms entire crop was estimated at 1500 pounds). The contract did not specify where the basil must be cultivated. The day before sun farms were to begin the harvest a giant hailstorm destroyed half the sun farms crop. Sun farms attempted to purchase additional basil from other farms, but this late in the season the cost was 4 court for full performance of the contract, which of the following arguments might sun farms assert to claim its duties have been discharged by operation of law?

Commercial Impracticability

Cypress offers a commercial property for sale to Fazio. A store named garden ridge is the primary tenant for the property. Garden ridge pays cypress $805,040/year in net income. Fazio is concerned about garden ridge's finances and is only interested in the property if garden ridge continued to provide the money per year. Fazio sends cypress a letter of intent to purchase the commercial property for $7.67 million "based on currently reported net income" in response, cypress agrees to provide all financial information in its possession. Cypress fails to disclose that 1) garden ridge asked for a rent reduction 2) cypress bank was concerned about garden ridge's ability to continue paying rent that its required a personal guaranty of loan. Fazio entered a agreement with cypress and GR went into bankruptcy after, Fazio was forced to sell the property for $3.75 million

Did the court hold Cypress liable for fraud?

Yes