Govinder instructs his employee Subash to bid on his behalf at a classic car auction for a 1956 vintage Mercedes. He instructs Subash to ʻin no circumstances bid more than $80,000. Subash attends the auction and successfully bids $90,000 for the Mercedes. Another bidder then offers Subash $91,000 to buy the car. Who is liable to pay the $90,000 and why? Can Subash take any action to avoid liability?
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- On July 24 of the current year, Sam Smith was involved in an accident with his business use automobile. Sam had purchased the car for 30,000. The automobile had a fair market value of 20,000 before the accident and 8,000 immediately after the accident. Sam has taken 20,000 of depreciation on the car. The car is insured for the fair market value of any loss. Because of Sams history, he is afraid that if he submits a claim, his policy will be canceled. Therefore, he is considering not filing a claim. Sam believes that the tax loss deduction will help mitigate the loss of the insurance reimbursement. Sams current marginal tax rate is 35%. Write a letter to Sam that contains your advice with respect to the tax and cash flow consequences of filing versus not filing a claim for the insurance reimbursement for the damage to his car. Also prepare a memo for the tax files. Sams address is 450 Colonels Way, Warrensburg, MO 64093.Ricky signed a contract to sell his slightly-used Suzuki Vitara Golf for $15,000 to an old friend Boris, after the latter threatened to tell Ricky's wife that Ricky is a discharged bankrupt. The vehicle still has a market value of $24,000. Boris told Ricky that if he didn’t sell his car to him, he will could always organise some of his former associates, who are all convicted felons, to visit Ricky and force him to do so. Advise Ricky on whether he has any remedies to have the contract declared void and get his car backMr. Saeed wanted to purchase a horse from Raza, but the price he offered to pay for the horse was less than that Raza was willing to sell it for. The horse, therefore, was still in his possession. Saeed communicated his offer through a letter, saying, “If I hear no more about you, I consider the horse is mine at Rs 10000” Raza could not respond to the letter because he was busy with an auction on his farm. Mr. Saeed then sued Raza for the horse. Does Raza’s silence be considered an acceptance of the offer? Explain with relevant section of law.
- Charles wants to renovate the bathroom and kitchen in his home, and he hires Veronica to do this work. They enter into a contract after agreeing to a cost of $40,000. However, once Veronica starts work, she realizes that it will cost $15,000 extra to complete the work that she promised. To show good faith to Charles, Veronica tells him that she will split the added cost with Charles and asks Charles for an additional $7,500. Charles refuses to pay the additional $7,500, and Veronica threatens to stop work on the renovation. After fearing that another contractor will probably charge much more, Charles calls Veronica and tells her he’ll pay the additional $7,500. After the renovations are completed, Charles refuses to pay the additional $7,500, despite agreeing to it. Veronica sues Charles. Who wins? Please explain.Louisa, worried about her cousin Garth’s dangerous obesity and seeming addiction to Power Up! promises to pay Garth, $10,000 if Garth stops drinking Power Up! and loses 100 pounds within the next two years. Garth agrees, performs his part of the bargain, and asks for the money. Louisa refuses to pay, saying that she forgot about the deal, but that even if she did make such a pledge, there was no valid consideration for it. Garth files a suit against Louisa. In whose favor is the court likely to rule, and why?Ubaldo is the owner of a building which has been leased by Remigio for the past 20 years. Ubaldo has repeatedly assured Remigio that if he should decide to sell the building, he will give Remigio the right of first refusal. On June 30, 1994, Ubaldo informed Remigio that he was willing to sell the building for P5 Million. The following day, Remigio sent a letter to Ubaldo offering to buy the building at P4.5 Million. Ubaldo did not reply. One week later, Remigio received a letter from Santos informing him that the building has been sold to him by Ubaldo for P5 Million, and that he will not renew Remigio’s lease when it expires. Remigio filed an action against Ubaldo and Santos for cancellation of the sale, and to compel Ubaldo to execute a deed of absolute sale in his favor, based on his right of first refusal. a) Will the action prosper? Explain.
- Phil Dunphy, a real estate agent, is considering whether he should list an unusual $755,485 house for sale. If he lists it, he will need to spend $5,573 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $20,636. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the probability of selling this house in 6 months to be 71%. What is the expected profit on this listing? Your Answer:Aki offered to sell her house and lot to Jannie for P2,000,000 who was interested in buying the same. In her letter, Aki stated that she was giving Jannie a period of one month within which to raise the amount. A week before the expiration of the period, Aki told Jannie that she is no longer willing to sell the property unless the price is increased to P3,000,000. May Jannie compel Aki to accept the P2,000,000 first offered? No, because the increase in the price is 50% and is deemed iniquitous and unconscionable. Yes, the period is deemed for the benefit of Darleane as it was Tin who voluntarily offered the period to her No, because the promise to sell had no cause or consideration distinct from the selling price Yes, because this is an obligation with a period intended for the benefit of both partiesPhil Dunphy, a real estate agent, is considering whether he should list an unusual $902,958 house for sale. If he lists it, he will need to spend $3,668 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $21,270. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the probability of selling this house in 6 months to be 44%. What is the expected profit on this listing?
- Happee offered to sell her laptop to Kofi Brokeman for GH¢1,200 and Kofi Brokeman replied by offering to purchase the laptop for GH¢600. Happee refused to sell for GH¢600. Kofi Brokeman then wrote to Happee agreeing to pay the said GH¢1,200 but she still refused to sell. Happee immediately sold the laptop to her boyfriend, Kwame Showboy at GH¢300. Kofi Brokeman sued Happee for breach of contract.what is the legal issue or legal rule?Joe wants to sell stock to his brother Michael. The fair market value of the stock is $10,000 and as this stock is traded on a national exchange it is very easy to demonstrate that this price is a fair price. Joe's basis in the stock is $30,000. Will the Related party disallowance rules from section 267 still apply? What abuse are the IRS trying to prevent with the 267 rules? b) Joe sells the stock two months after the distribution for $47,000. The alternative valuation date was elected. What does Joe recognize on his tax return with respect to this transaction? Dan wishes to determine if Thomas meets the requirements of a dependent on his 2021 federal income tax return. What 6 tests must be satisfied in order for Dan to treat Thomas as a dependent under the qualifying child test? Sara is the sole shareholder of Lee Corporation. During 2021, Lee Corporation distributes $300,000 in cash to Sara. Lee Corporation's E&P was $120,000 prior to this distribution. Sara's basis in…Mary had a contract with Brick, whereby Brick will paint her Home for $2,000 TT. Brick regrettably got another job for a larger amount of money and told Mary that he cannot paint her house anymore. Mary is furious and has contacted her lawyer to sue Brick for breach of contract. Jeb contacted Mary soon thereafter and agreed to paint her house for $2,500 TT. Mary is however concerned that if she sues Brick, she may not be able to get any recourse via damages because she has not lost anything. Based on the rules of governing the payment of damages in the event of a breach of contract. Using IRAC please advise Mary on what she has to establish to be paid damages, clearly identifying each rule.