Contract Formation, Breach, and Defenses
Question1.As a general rule, the party who receives the contractual right is the assignee. Assignments do not need to be supported by consideration to be legally effective even though it is often is. Madonna has the right to receive payments in return for needed cash.
Question2. If a place of performance is not designated by a statute, other legal acts, or contract does not appear to form the customs of trade or the nature of the obligation, performance must be made on an obligation to transfer property
Question3. Against a backdrop of several properties rights, the two components of freedom of contract regulate the transfer of several property rights persons have (McKendrick, 2014). The manifested consent of the right-holder is, under normal circumstances, sufficient to transfer a property right; and property rights may not normally be transferred without the consent of the right holder. In that case, Celine should not conduct the operations without the presence of MGM Hotel & Casino.
Question4. MGM Hotel & Casino does have a claim against Celine Dion if she allows Madonna to show up secretly and shames the show despite leaving the customers excited and happy. The privilege of flexibility to contract empowers persons to trade their few property rights on the premise of their insight that different rights would better serve their purpose; it enables them to give their rights away on the basis of their knowledge that others could make better use of these rights. Therefore, rights to use resources are permitted to flow to those who believe that they know best how to use them.
Question 14 In the case, Aaron Cris is the principal. It is because he is the owner of the house because he gives Aron the permission to let Paul inspect the home. The other point that Paul sells the house which he does not own to Paul.
Question 15Aron is the agent of the Chris. Agent is a person who undertakes to do the duties of the Chris who is the seller of the house. It can be said that Aron is the agent because he asks permission to Cris before he allows the purchaser to inspect the house.
Question17.Aron is te broker of the Cris regarding the real estate. He has the authority to make a purchase of the house, and he may be paid a commission or a certain amount above the agreed price. He has the power to make contracts just like the seller.
Question 19 The authority authorising him to place an advert in a newspaper is that of the agency where we have a broker and the principal.
Question20. There are different duties of agent toward principal. They are, the agent should keep the principal informed, he should do the tasks assigned to him with diligence and due care and should follow all the instructions given by Chris to the latter. Fourthly, Chris should not take more cash that assigned or accept a bribe, and finally, he should negotiate and sign not with his name but for Cris.
Question21.The listing agreement grants Chris different duties. The first duty is that he Aaron has right for remuneration. He should also be compensated for the expenses incurred during the performance of the obligation. If Chris fails to pay, Aaron has the right to lien over the real estate property. Finally, Chris makes sure the property which is to be sold is in good condition.
Question 23The principal grants the agent the full authority to sell the, however, the principal should be informed of aa the accounts of the goods in question. Aaron should have told Chris about the low price since it is an account relating to the house.
Question 24Cris should be informed of all the details regarding the house. Therefore, in this case, it was the duty of Aaron to tell Chris of the two perspective buyers, Ned and Judith. He should not work for himself but the principal.
Question25. Judith can claim the extra amount from Chris because the house was sold beyond the market price. However, Chris has many defences (Buchanan, 2014). They include that the price was agreed based on the negotiations, and he was not forced. Faith can, however, claim that he was not informed of the floods and the molded state. Therefore, Chris should be responsible for the actions of his client.
Judith should be compensated of the exact charges above the market price. It is because the agent should give the real information about the property. Therefore, the compensation will be on grounds that there was a misrepresentation of facts about the property that was meant to defraud Judith. There are many sources of guidelines and operating principles regarding the duties of real estate agency. State laws are the main source, the rules set by the real estate and housing authorities. Then finally, the functions and the operating principles can come from the agreement between principal and agent.
References
Buchanan, M. A. (2014). CSR and the Social Contract: New Lenses for Stakeholder Analysis and Strategic Management.
McKendrick, E. (2014). Contract law: text, cases, and materials. Oxford University Press (UK).
