Contracts Answer Practice Problems

1. Lana agrees to work as Michelles personal assistant for one year at a salary of $24,000. But Lana dies in the ninth month of the contract. Michelle hires a replacement who charges $30,000 to do the same job. Michelle sues Lanas parents, who control the estate that Lana left behind, to recover the additional money she ended up having to pay as a result of Lanas death. Discuss whether you think a court will require Lanas estate to pay damages to Michelle. Why or why not? 2. Porches & Verandas, Inc., agrees to build a screen porch for Quinn, but fails to complete the job. Quinn hires Ramadas, Inc., to finish the project. Explain how a court would calculate how much Quinn should be awarded if he sues Porches and Verandas. 3. Larue buys an iPod for $150 and a new laptop for $1,200 and signs a two-year employment contract for a $4,800 monthly salary to start at the beginning of the next month. Which of these three agreements Larue enter into needs to be in writing in order to be enforceable, under the Statute of Frauds?

4. Greg contracts to sell his ranch to Marley, who is to take possession on June 1st. Greg delays the transfer until August 1st. Marley incurs expenses in providing for the cattle he had purchased for the ranch. When they made the contract, Greg had no reason to know of the cattle. Is Greg liable for Marleys expenses for providing for the cattle? Why or why not?

NOTE: Business Law 001