Imagine you represent a person who claims to have been the victim of a breach of contract. Determine the information that you would need to know to best determine if there was a contract. How would you present a case to a court to show your client was the victim of a breach of contract, and how would you overcome the defenses to the alleged breach?

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Nestor RutherfordLv2

17 Apr 2019

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AES was formed in 1996 and hired employees that year. At a meeting in 1997, they expressed concern to an executive that the company was not likely to survive as they used outdated equipment and worked long hours. The executive told the employees that they should stay with the company because it was likely the firm would merge with another company and, if it did, the original eight employees would be rewarded with five percent of the value of the sale or merger of AES. In 2001, AES was bought by another company. Seven of the eight original employees were still with the firm and requested five percent of the sale price. The company refused to pay, contending that the employees were at-will and there was no enforceable contract. The alleged agreement was illusory and, in any case, it violated the statute of frauds because it took more than one year to come into effect. The employees sued for breach of contract. The trial and appeals court agreed with AES; the employees appealed. Did the company and employees have a bilateral or unilateral contract? Explain

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1. The Winklers were interested in purchasing a home in the Valleyview Farms housing development. They contracted the developer, Galehouse, and selected a lot that cost $57,000. They asked the developer to show them plans for houses for which the construction costs would range from $1800,000 to 190,000, indicating that this was the price they would be willing to spend on construction only and wasnât to include the lot price. The developer gave them several books and plans to look at. After the Winklers had several conversations with Galehouse, he drafted plans for a house and gave the Winklers a quote of $198,000 for the construction costs. The lot price was not included. After several weeks of negotiations, the parties agreed on a price of $291,000 for both the construction costs and the lot. Galehouse prepared a written contract to reflect the agreement of the parties, but he forgot to include the lot price. The final contract read âprice for $198,000.â The Winklers paid Galehouse $57,000, the lot price, as a down payment. When the construction was completed, and the Winklers were finalizing their loan from the bank, the parties discovered the error in the contract. The Winklerâs argued that the written contract indicated total costs of $198,000, and that is the total amount they should pay. Galehouse sued to have the contract reformed to reflect the full agreed upon price of $291,000. Should the contract be reformed? Why or why not? Fully explain your answer. 2. The Laths were the owners of a farm that they wished to sell. Mrs. Mitchell considered purchasing the land but found that a barn located across the road was objectionable. Mitchell argued that the Laths orally agreed to remove the barn in consideration of her promise to purchase the property, which she agreed to do for $8,400 in a written contract. The contract made no mention of the removal of the barn. After Mitchell moved into her new home and made several improvements to the land, the Laths never removed the barn and expressly communicated that they had no intentions of removing the barn. Mitchell sued the Laths for breach of contract. In whose favor do you think the court ruled? What effect does the parol evidence rule have on admissibility of oral agreements regarding the promise to remove the barn? Fully explain your answer. 3. Shirley and Vince Ladner leased 10 acres of their land to J.D. Pigg, who used the land for his cattle farm. The Landers and Pigg created a 10-year contract, providing that rent be paid annually on August 1. Pigg excuted the lease with his first payment of cash in August 2000. On August 1, 2001, Mrs. Pigg attempted to mail the check for the second rent payment but placed the wrong mailing address on the envelope. Consequently, the check was returned to her residence. Mrs. Pigg then properly forwarded the check to the Ladners. However, the Ladners did not receive the check until August 8, 2001, at which time they refused to accept the payment and returned the check to Pigg. The Ladners claimed that the lease had been terminated by Piggâs failure to submit payment in a timely manner, and this failure constituted a material breach of contract. Is Piggâs failure to tender payment on August 1 a material breach of the lease? Why or why not. Fully explain your answer.

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C.B. Management, Inc., had a franchise agreement with McDonaldâs Corp. to operate McDonaldâs restaurants in Cleveland, Ohio. The agreement required C.B. to make monthly payments of certain percentages of the gross sales to McDonaldâs. If any payment was more than thirty days late, McDonaldâs had the right to terminate the franchise. The agreement also stated that even if McDonaldâs accepted a late payment, that would not âconstitute a waiver of any subsequent breach.â McDonaldâs sometimes accepted C.B.âs late payments, but when C.B. defaulted on the payments in July 2010, McDonaldâs gave notice of thirty days to comply or surrender possession of the restaurants. C.B. missed the deadline. McDonaldâs demanded that C.B. vacate the restaurants, but C.B. refused. McDonaldâs alleged that C.B. had violated the franchise agreement. C.B. claimed that McDonaldâs had breached the implied covenant of good faith and fair dealing. Which party should prevail, and why?

Who is the franchisor? (Answer choices: McDonaldâs or C.B. Management, Inc.)

Who is the franchisee? (Answer choices: McDonaldâs or C.B. Management, Inc.)

In a franchise relationship, the ______ (Answer choices: franchisee or franchisor) is economically dependent on ______ (Answer choices: franchisee or franchisor) business system.

The franchise relationship is defined by the ____ (Answer choices: contract, agency, or friendship) between the franchisor and the franchisee.

Did C.B. Management, Inc.âs failure to make a payment due more than thirty days earlier constitute a breach of the franchise contract?
(Yes or no?)

Why?

(Answer choices: A. the contract provided McDonald's could terminate the contract when a payment was more than 30 days late B. the contract provided that McDonald's could terminate the contract, but since they didn't terminate in the past they waived the right to terminate C. the contract provided that McDonald's could terminate the contract, but since they didn't terminate in the past they breached the implied covenant of fair dealing)

Did the contract provide that the acceptance of a late payment waived McDonald's right to terminate for late payments? (Answer choices: yes or no)

What does an implied covenant of good faith and fair dealing require? That the parties act _____ (Answer choices: reasonably or arbitrarily) and in good faith in fulfilling their contractual duties.

Did McDonald's act of accepting late payments in the past transform McDonald's right to terminate into a discretionary decision governed by the standard of good faith and fair dealing in the future?
(Yes or no)

Why? Which one of these reasons is not correct? (Answer choices: A. the terms of the agreement control this issue B. the actions of the parties control this issue C. McDonald's exercised privileges expressly reserved in the agreement)

A court would likely find for _____ (McDonaldâs or C.B. Management, Inc.)

WHAT IF THE FACTS WERE DIFFERENT?

What if McDonald's had accepted late payments and there was no agreement âthat acceptance would not constitute a waiver of any subsequent breachâ? Would C.B. Management, Inc., prevail on its claim? Possibly, if C.B. Management, Inc., could show that McDonald's _____ (Answer choices: reasonably or arbitrarily) terminated the franchise.