Elegant Contract

Our project team analyzed the Fraud and Illegal Acts Case (True blood Case Studies- Case 08-9), which involves a questionable sales transaction made between Jersey Johnnie’s Surfboard, an SEC registrant, and Mr. Sinaloa, an independent sales representative of the company. As a simplified overview of the case, an external audit firm was hired on to perform a year-end audit of Jersey Johnnie’s Surfboards, Inc. Towards the end of the audit, the engagement partner notified the auditors that there could be a possibility of fraud and illegal acts made by the company.

2) Repair Theory – Damages should put things in the state that they were specified in the contract (IE fix the land as per the contract)

Enforceable contract Peter v. Don. Peter will have an enforceable contract with Don if he can show that all the required elements of a contract are present. If there is a contract between the two then it will be governed by the common law requirements of an enforceable contract instead of the Uniformed Commercial Code, which would be used if their agreement had involved the sale of goods. In order for a contract to be formed between Peter and Don the two must react mutual consent Mutual consent can generally be formed through the form of an (A) offer and (B) acceptance. An additional requirement for both parties to show (C) consideration is also

Wally, business owner of Windy City Watches is located in downtown Chicago, IL. Business is booming and Wally needs to buy a large quantity of Rolek watches which sell for $50 apiece. He calls Randy Rolek, the wholesaler located in Milwaukee WI. They discuss terms on the phone for a while before coming to an agreement in which Wally offers to buy 100 watches for $25 each. Randy sends over an order form in which Wally states that he is agreeing to purchase watches from Randy for $25 each, but does not include the quantity in which he will buy. Randy sends 50 watches the following week with a note included stating that he has sent 50 watches and will send the other remaining 50 watches within a few days but includes the bill for the full

According to the UCC §§ 2-609(2) and 2-609(4) Between merchants the reasonableness of grounds for insecurity and the adequacy of any assurance offered

Ling Nan ZHENG, Ren Zhu Yang, Yun Zhen Huang, Wen Qin Lin, Sai Bing Wang, Ye Biao Yang, Cui Zhen Lin, Rong Yun Zheng, Hui Fang Lin, Xiu Ying Zheng, Jin Ping Lin, Hui Ming Dong, Yu Bing Luo, Sau Chi Kwok, Sai Xian Tang, Yi Zhen Lin, Rui Fang Zhang, Mei Juan Yu, Mei Ying Li, Qin Fang Qiu, Yi Mei Lin, Mei Zhu Dong, Fung Lam, Xiu Zhu Ye, Sing Kei Lam, and Xue Jin Lin, Plaintiffs-Appellants, v. LIBERTY APPAREL COMPANY INC., Albert Nigri, and Hagai Laniado, Defendants-Cross-Claimants-Appellees, Ngon Fong Yuen, 88 Fashion Inc., Top Five Sportswear, Inc., S.P.R. Sportswear, Inc. and 91 Fashion, Inc., Defendants, Lai Huen Yam, a/k/a Steven Yam, 998 Fashions, Inc. and 103 Fashion Inc.,

This transaction will be governed by the UCC because it is for the sell of good. This transaction would also be considered a bilateral contract because the offeree’s acceptance was by a promise. Bilateral contracts allow for either a promise to perform or performance. The transaction will also fall under the Statue of Fraud because the transaction is for the sell of goods that is over the amount of $500. The requirement for the SOF in regards to the sale of goods is that the contract must be in writing, signed by the party to be charged, identify the parties and contain the quantity being sold.

Case Analysis: Blanchard Importing and Distributing Co. Inc. (HBS Case 9 - 673 - 033)

Pat was very frustrated because she wanted to purchase a home but lacked the funds or credit to do so even though Pat was expecting shortly to receive a one-half million dollar final installment payment for some land she sold several years earlier. Dan knew that Pat was very interested in purchasing a home and approached Pat with a proposal to assist Pat in buying a home. Dan told Pat that he would help Pat with the financing. After finding the home she wanted to buy for $250,000, Dan and Pat orally agreed that Dan would purchase the home and "when you come up with the money, I (Dan) will sell it to you (Pat) for $250,000 plus a fair commission to be determined."

Brewster Heights Packing, the buyer entered a contract with the seller for the purchase of apple packing machinery. The district court entered judg-ment in favor of the seller on its breach of contract claim. On appeal, the court af-firmed. The buyer contended that both it and the seller intended at the time of their con-tract to be bound by their written agreement and to prior oral discussions. The buyer contended that the largest portion of its damages stemmed from the loss of an orally bargained-for system. The court held that a clause in the parties’ contract prohibited the inclusion of any understandings or representations not expressly included in the con-tract. It appeared that the buyer intended to use the parol evidence not to explain or to supplement the contract, but rather to contradict the limitation of warranties contained in the contract. The court concluded that the buyer’s counterclaims of fraud and viola-tion of the Washington Consumer Protection Act failed because they did not give rise to the independent tort of fraud and there was insufficient evidence to demonstrate an ef-fect on other consumers or a real and substantial potential for repetition of unfair con-duct.

Lillard, Monique C., Fifty Jurisdictions in Search of a Standard: The Covenant of Good Faith and Fair Dealing in the Employment Context, 57 Mo. L. Rev. (1992)

The four elements of a valid contract are offer and acceptance, meeting of the minds, consideration and competent parties. The contract must cover a legal purpose or objective as well (Binder, 2012). The objective theory of contracts holds that contract formation is dependent on what is communicated, rather than what is thought by one of the parties (Barnes, 2008).

Case Analysis: Blanchard Importing and Distributing Co. Inc. (HBS Case 9 - 673 - 033)

In order for a contract to be formed, there are various requirements. These are offer, acceptance, consideration, and the intention to create legal relations. A contract may also be terminated.

1. For the following types of undertakings, which contract modes are most appropriate? Be prepared to explain the rationale behind your choice.