ACTG 2P40 Lecture : day 5*.docx

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salmonlocust771

27 Mar 2012

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Mistake: mistakes as to terms, words used inadvertently. When one party inadvertently used the wrong words. Rectification: correct the contract and allow it to be held at the correct price. Was there a complete agreement between the parties (no other conditions/adjustments/ambiguities) Parties did not have any other negotiations. The change of the written/verbal agreement appears to be an error and is more easily explained as such: errors in recording the agreement. The agreement was originally verbal and was then made to written. One of the parties made a mistake in a writing out the terms: misunderstanding as to the meaning of words. Almost never happens that the court can"t decide which meaning is most likely. The court will pick the term most favored by the plaintiff: mistakes arising from assumptions. Assumptions that you"ve made about the contract: mistakes as to the existence of subject-matter. Subject matter of the contract has perished before the contract is final.

Related Questions

Consider each of the following scenarios:

1. A seller orally agrees with one of its best customers todeliver goods in exchange for $20,000. While the sellerâs practiceis to obtain a written sales agreement, the seller delivered thesegoods to the customer without a written agreement due to thecustomerâs urgent need.

2. A seller agrees to provide accounting services to a customerfor the next year in exchange for $40,000. While the two partiesare negotiating the terms of the agreement and the specificservices to be performed, the seller begins to perform someservices as a gesture of good faith.

3. A seller has a written agreement to deliver goods to acustomer for $60 per unit. The price will drop to $55 per unit ifthe customer purchases more than 2,500 units per month.

4. A seller had a written agreement and provided custodialservices to a customer for $2,500 per month in a previous year. Thecontract expired on December 31, 2016. During negotiations for anew contract in January 2017, custodial services were provided atthe previous monthly rate and paid for by the buyer. The seller andthe customer agree to a new contract on February 1, 2017. Theseller is concerned whether a contract existed in January 2017 andwhether revenue can be recognized.

Required:

1. Determine if a contract exists for each of the scenarios.

2. If it is determined that a contract exists but the sellerbelieves it is probable that it will not collect the expectedconsideration, how does this affect the sellerâs ability torecognize revenue?

scarletdolphin760

Evelyn Vollmer orally agreed to loan Danny Lang 150,000 to make an investment in a local nightclub. The loan was to be repaid from the profits received from the investment. Their agreement was never memorialized in writing, however. Eighteen months later, Lang paid only 15,000 on the loan from the profits from the business. Vollmer filed a lawsuit alleging breach of contract. Using the Information presented in the chapter, answer the following questions.

1 ) Lang claimed that repayment of the loan would "almost certainly" take over a year and that his agreement with Vollmer was therefore unenforceable because it was not in writing. Is he correct? Explain.

2 ) Suppose that a week after Vollmer gave Lang the funds, she sent him an e-mail contain the terms of their loan agreement with her named typed at the bottom. Lang did not respond to the e-mail. Is this sufficient as a writing under the Statute of Frauds?

3 ) Assume that at trial finds that the contract falls within the Statute of Frauds. Further assume that the state in which the court sits recognizes every exception to the statute of Frauds discussed in the chapter. What exception provides Vollmer with the best chance of enforcing the oral contract in this situation?

4 ) Suppose that at trial, Lang never raises that the argument that the partiesâ agreement violates the Statute of Frauds, and the court rules in favor of Vollmer. Then Lang appeals and raises the Statute of Frauds for the first time. What exception can Vollmer now argue?

pucewildebeest226

1) Fred and Barney agree while talking on the phone to form apartnership. Their partnership agreement is legally binding

a. only if it is subsequently put in writing

b. only if a subsequent writing is filed with the state

c. only if each partner gives consideration to the other

d. without any further measures

2) Hillary, a partner in an LLC, owes $100,000 personally toseveral creditors. To satisfy these debts, the creditors may obtainan order entitling them to:

a. Hillary's profits as a partner

b. Hillary's interest in partnership assets

c. both a and b

d. none of the above

3) Generally accepted accounting principles that can determinewhether an accountant is negligent, are determined by rules,releases and pronouncements of

a. the Securities and Exchange Commission

b. the American Institute of Certified Public Accountants

c. the Financial Accounting Standards Board

d. all of the above

4) How is Apparent authority created?

a. By perceptions of third parties that have been created by theprincipal

b. By agreement

c. By implication

d. By either agreement or implication

5) Schuh hired Jack for six months as an assistant sales managerat $4000 a month plus 3% of sales.

a. The agreement must be in writing and signed by the party tobe charged.

b. This is an independent contractor agreement

c. Jack must disclose to Schuh any interests that are adverse toSchuh's business

d. Jack can be dismissed at any time during the six month periodof employment

oliveprairie-dog799

ACTG 2P40 Lecture : day 5*.docx

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