ContractsRemote Final 2023

.docx

School

University of Texas *

*We aren’t endorsed by this school

Course

421

Subject

Industrial Engineering

Date

Apr 3, 2024

Type

docx

Pages

3

Uploaded by MasterGalaxyQuetzal12

Report
FINAL CONTRACTS Student Name______________
FINAL CONTRACTS SPRING 2023 Smith and Jones work for Oakland University as research professors and are residents of Pennsylvania. As part of their job description, they are to develop software (“Software”) to improve the efficiency of heat and lighting systems. Using Oakland resources and funding they develop software that provides the most efficient system to control heat and light systems in large (25 story) buildings ever devised. Wishing to market this software, they contact Smith’s friend Austin also a resident of Pennsylvania who just inherited one hundred thousand dollars ($100,000) from his mother. Even though his net worth, including his home, was twenty five thousand dollars ($25,000) before the inheritance , Austin decided to invest the $100,000 in a company (Blackjack Company hereinafter “Company”) formed by Smith and Jones in return for a twenty per cent (20%) stock ownership which was to provide him with an annual dividend of 5% and a seat on the Board of Directors of the Company. Austin is also to be hired as vice president of the Company at a salary of $75,000 per year with the further agreement that he could not be discharged except for cause. On the same day that Smith , Jones and Austin entered into the agreement attached as Exhibit A , the company made its first software sale at a price of $200,000 to Ajax Company(“Ajax”) using the agreement attached as Exhibit B which was negotiated between the Company and Ajax. During the negotiations the Company and Ajax created a detailed list of specifications of how the Software would perform. Three months after the contracts were executed (August 1,2021), the Software fails after installation is completed causing Ajax’s building to overheat which caused a fire that destroyed the building; Oakland University sued the Company, Smith and Jones ;and the Company fires Austin without cause. Discuss the contractual rights and the ability of to recover damages ( if any) which (1)Oakland University can recover from Smith and Jones;(2) Ajax can recover from the Company; and (3) Austin can recover from the Company.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help