Apply the concepts presented in chapter 17 to the following facts situations.
I. Old McDonald enters into a contract to have his wheat harvested.The contract provides that “JonDear Inc. will harvest Old McDonald’s 200 acres for $2000.”When the wheat is ready to harvest JonDear’s combine breaks down and JonDear decides to transfer its responsibility under the contract to Swather Co..The agreement between JonDear and Swather provides that “JonDear will pay Swather Co. $1600 to harvest Old Mcdonald’s 200 acres wheat.”Swather Co. does not perform and Old McDonald’s crop rots in the field.
1. Identify the contractual rights and duties of Old McDonald and JonDear.
2.Was the agreement between JonDear and Swather an assignment, delegation or both?Label the parties with the proper terminology.
3.Can Old McDonald refuse to accept performance from Swather?
4.Swather has no assets so Old McDonald sues JonDear for the loss of his crop.JonDear argues that it should not be liable because it was Swather’s responsibility to harvest the wheat.How will this be resolved?
II. Brent enters into a contract to purchase a car from Slick Willy’s Auto Sales.The contract provides that, “Brent will pay $2400 for a 1976 Ford Pinto, $500 down payment and the balance to be paid in 60 days.”
As soon as the contract is signed, Slick informs Brent that Slick has transferred its interest in receiving payment for the car to Trusty Financing.After making the down payment to Trusty, Brent discovers from the pervious owner that Slick had turned back the odometer on the Pinto and that the car had significantly more miles on it than Slick had led him to believe?
1. Identify the contractual rights and duties of Brent and Slick.
2.Examine the relationship between Slick and Trusty.Did their agreement create an assignment, delegation or both?Label the parties using the appropriate terminology.
3.Trusty sues Brent for the balance due on the car.Brent asserts the defense of misrepresentation.Trusty argues that the defense does not apply because Trusty was not involved in the misrepresentation.How would this be resolved?
III. Lisa signs a contract to write a novel for Heritage House Publishing.The contract provides that “Lisa will receive $20,000 when she submits the final draft of the novel.”
Lisa begins to write the novel but is afflicted with a severe case of writer’s block.After struggling with the project for weeks, she decides to transfer her obligations to another writer, Niki.She contacts Niki who agrees to write the book, and they enter into the following agreement.”I, Lisa, assign my contract with Heritage Publication to Niki.”
1. Identify the contractual rights and duties of Lisa and Heritage Pub.?
2. Consider the language of Lisa and Niki’s agreement.Does this create an assignment, delegation or both?
3. Would the transfer of Lisa’s contractual interest be valid, effective?Why or Why not?