1. Brooking agreed to sell a tract of land to Dover Pool & Racquet Club, Inc., on which Dover planned to build a swim and tennis club. Neither party to the contract knew that just before the contract was signed, the local zoning board of the town in which the land was located published a notice of public hearings on a proposal to amend the zoning in a way that would have prevented Dover from using the land as it had planned to do. Will this contract be enforced?
2. Weaver, a high school dropout, leased a gas station from American Oil Company and signed a standard agreement prepared by the oil company’s lawyers. The lease (contract) contained a clause in fine print that provided that the oil company would not be liable for any injury occurring on the premises regardless of fault. No one representing the oil company called Weaver’s attention to the clause or explained it to him. In addition, the lease provided that Weaver would have to pay American Oil for any loss or damages, even if they resulted from the oil company’s negligence. An employee of the oil company spilled gasoline on Weaver and his assistant, causing them to be burned and injured. The oil company brought an action seeking to be relieved of liability for the injury and to have Weaver held liable for any damages to the assistant. Will the contract provision for Weaver being held liable be enforced?
3. Malina, the owner of an old, multistory factory building, offered to lease the building to Larson, a manufacturer. Larson wanted to know whether the construction of the floors was strong enough to support the heavy machinery he planned to install. Malina assured him that the floors would support any machinery brought into the building. After the lease was signed, Larson’s engineer studied the construction and reported that the floors would hold only half of the machinery that Larson planned to install. Is Larson bound by the lease?
4. Power-Sports wished to obtain Harley-Davidson’s permission to purchase a motorcycle dealership. Power-Sports provided written and oral statements about its business model, and based upon these statements, Harley-Davidson approved the purchase. Later Harley-Davidson learned that Power-Sports was operating in a manner inconsistent with its statements about its business model. Harley-Davidson sued for damages. Will Harley-Davidson be successful in its lawsuit against Power-Sports?