1.Adam owes Cathy $10. Adam tells Cathy that he doesn’t have $10 to repay her, b
ID: 455352 • Letter: 1
Question
1.Adam owes Cathy $10. Adam tells Cathy that he doesn’t have $10 to repay her, but that he has an agreement with Bob that he will mow Bob’s lawn, in exchange for which Bob will pay Cathy $10 to satisfy the amount Adam owes to Cathy. Adam mows Bob’s lawn, but Bob doesn’t pay Cathy or Adam anything. Can Cathy successfully sue Bob for $10? Why or why not?
2.Assume the same fact pattern as set forth in the previous question (number 1), except that Cathy is not mentioned in the agreement between Adam and Bob. Can Cathy successfully sue Bob? Why or why not?
3.Debbie borrows $250,000 from Friendly Community Bank ("FCB") to buy a house. One month after the closing on Debbie’s house, FCB assigns its rights as Debbie’s creditor (including the right to receive Debbie’s mortgage payments) to Unfriendly Out-of-State Bank ("UOB"). Can Debbie object successfully to the assignment from FCB to UOB? Why or why not?
4.Cindy Crawford ("Crawford") enters into a contract with Vidal Sassoon ("Sassoon") in which Sassoon will trim and style Crawford's hair every month in exchange for $500 per visit. Sassoon delegates his olibgation to trim and style Crawford's hair to Donald Trump's hair stylist. Can Crawford object successfully to this delegation? Can she refuse to pay $500? Why or why not?
5.Assume the same fact pattern as set forth in the previous question (number 4), except that the contract between Crawford and Sassoon is about renting hair care equipment – in other words, Crawford enters into a contract with Sassoon in which Sassoon will rent to Crawford hair-care equipment (specialized combs, brushes, dryers, shampoos, conditioners, etc.) in exchange for $500 per month. Sassoon then delegates his obligation to Donald Trump's hair stylist to rent the equipment to Crawford. Can Crawford object successfully to this delegation? Can she refuse to pay $500? Why or why not?
6.If ABC Coal Company ("ABC") has a 5 year contract with White Star Lines ("White Star") to provide 100 tons of coal per month to the ocean liner Titanic that White Star owns in return for a payment of $100 per ton of delivered coal, and the Titanic in its first week of operation hits an iceberg in the North Atlantic Ocean and sinks, is ABC now discharged from its performance under the contract? Why or why not?
7.Assume the same fact pattern as set forth in the previous question (number 6), except that (i) the Titanic dodged the iceberg in its first month of operation, did not sink, and continued to cross the Atlantic Ocean between Europe and North America, and (ii) White Star did not pay ABC any money for the deliveries of coal the Titanic has received, telling ABC that "money is tight" and that White Star will pay ABC as soon as it can. Is ABC now discharged from its performance under the contract? Why or why not?
Explanation / Answer
Answer-1 Yes she can sue him. The reason being in the contract she is mentiones and have become one of the party as per the contract.
Answer-2 If her name is not mentiones then she cannot sue him.
Answer-3 He cannot object as it is out side the purview of his business.
Answer-4 Yes she has all right to object as there was an verbal contract made between her and the service provider and she is supposed to pay for his services only.
Answer-5 She cannnot object as the contarct just says that the equipment would be provided. If that equipment at the same price can be provided by another vendor then there is no need.
Answer-6 No as the contravct is limited to the asset mentioned under the contact that is ship here. As there is not asset remains then no obligation for the company to take coal from them.
Answer-7 No ABC in that case cannot be discharged.
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