(solution) The questions on page two are the ones that are with the problem

(solution) The questions on page two are the ones that are with the problem

The questions on page two are the ones that are with the problem on page 1. Could you please do the 3 questions?

Tony Drexel, a 16 year old of average mental ability, enters into a
contract with Nick Biddle, owner of a blacksmith shop in Bull Chip, Texasa town of 1,800 in the barren Texas panhandle. Tony is to receive training
and room and board in exchange for helpiny Nick shoe horses. The contract
is on a pre-printed form drawn up entirely by Nick and contains six pages
of numbered paragraphs some of which are shown below:
I, Tony Drexel, as a condition for any training and employment received
and for the valuable sum of 51.00, agree to the following conditions of
emp 1oyment: ~ 1. I shall pay to Nick Biddle the sum of $400.00 per month to cover
room and board expenses. 2. I agree that r shall not establish any business that involves
shoeing horses within 40 miles from N1ck Biddle's shop for a
period of one year after leavinq the employ of Nick Biddle. At the end of the contract is paragraph #40:
40. This written agreement represents the entire contract between
the parties. Tony spends i1j}proxillltltely three minuLes reading the contract ilnd signs
H. Al though the contract was drafted by Nick in Texas, it was signed by
both parties in an Oklahoma hospital where Nick was recovering from an
. inj u'rysuf·feredwhl-le~,a,tt-?mpt~lA9tG,s'hoearnul-e-he mistakenly thought weS
.
a horse.
Tony works for Nick for one year without makinq any payments for room
and board, and decides to open his own blacksmith shop in Metropolis, Texas,
a town of 3,500 a distance from Bull Chip as shown on the attached map.
Metropolis is 35 miles on a direct line from Bull Chip, but can only be
travelled by car or horseback on back roads at a minimum distance of 45
mil es.
Please answer all of the following questions in detail. Assume that
the contract is divisible, and that the age of majority in Texas and
Ok 1ahoma is 18. 1. Assume that the common law of Texas allows for a minor's avoidance of
all contracts but necessaries and that the law of Oklahoma is unique in
the fact that it allows a minor to avoid ~
contracts without making
restitution.
Assume that Nick Biddle was to make a 20r.; profit on Tony's
room and board. In a suit ina Texas court by Nick to recover the
payment of $4,800.00 ($400/month x 12 months-in case you couldn't figure
it out), Tony seeks to defend by claiming the contract is totally voidable
as per Oklahoma law. Is his defense valid? If not, what can Nick
recover? Explain. Assume that Tony received no salary or compensation
for the year of employment. 2. Nick seeks an injunction to prevent Tony from opening a blacksmith shop
in Metropolis on the basis of paragraph 2 of the contract.
Oecide this
issue in favor of either party without regard to the issue of Tony's
minority, and explain your answer.
3. For the sake of this question
appears in the c.ontract:
39. ;— only, assume that the following clause Sould Tony Drexel breach any provision of this contract, he shall
be liable to Nick Biddle for the sum of ~15,OOO.OO as liquidated
damages. Nick alleges that Tony owes him $15,000.00 as per paragraph 39 of the
contract.
Without regard to the f ac t that Tony is a uif nor , and
regarding this legal issue only, should Nick be entitled to the $15,00.00?
Exp la i n , As sume that this is the gnly ranee)" s ouqht by Nick; ,ie.,
Nm-rs noT-seenn9 an injunction or the $4,800.
– ~Automobi1e Route 45 mil es (only means to travel !''?t!-:een towns ) 3 .z n Chip Uniform Certified Public Accountant Examination – Number 2 (Estimated time-IO to 15 minutes) Business Law & Professional Responsibilities b. Items 68 through 72 relate to the
attempted
assignment
of part of the fee to
Weaver. Assume that a valid contract exists
between Blake and Reach. For each item, determine whether the statement is True or False. On
the Objective Answer Sheet, blacken <:D if the
statement is True or ® if the statement is False. Question Number 2 consists of 15 items. Select
the best answer for each item. Use a No.2 pencil
to blacken the appropriate ovals on the Objective
Answer Sheet to indicate your answers. Answerall items. Your grade will be based on the total
number of correct answers. 68. Reach is prohibited from making an assignment of any contract right or duty.
69. Reach may validly assign part of the fee to
Weaver.
10. Under the terms of Reach's acceptance,
Weaver would be considered a third party
creditor beneficiary.
71. In a breach of contract suit by Weaver,
against Blake, Weaver would not collect any
punitive damages.
72. In a breach of contract suit by Weaver, against
Reach, Weaver would.be able to collect punitive
damages. On December 15, Blake Corp. telephoned Reach
Consultants,
Inc. and offered to hire Reach to
design a. security system for Blake's research
department.
The work would require two years
to complete.
Blake offered to pay a fee of
$100,000
but stated that the offer must be
accepted in writing, and the acceptance r~Md
by Blake no later than December 20.
On December 20, Reach faxed a written
acceptance to Blake. Blake's offices were closed
on December 20 and Reach's fax was not seen
until December 21. .
Reach's acceptance contained the following
language: c. Items 73 through 75 relate to Blake's
December 22 signed memo. For each item, determine whether the statement is True ® or False
® and blacken the corresponding oval on the
Objective Answer Sheet. "We accept your $1,000,000
offer.
Weaver has been assigned $5,000 of the
fee as payment for sums owed Weaver
by Reach. Payment of this amount
should be made directly to Weaver." I – -Oft December 22,'B-lake -sent a signed memo 7~each's
oral acceptance of Blake's December
… .j 22 memo may be enforced by Blake agains~
<
Reach.
74. Blake's memo is a valid offer even though it
contains no date for acceptance.
75. Blake's memo may be enforced against B-lake
by Reach. to Reach rejecting Reach's December 20 fax but
offering to hire Reach for a $75,000 fe{ Reach
telephoned
Blake on December 23 and orally
accepted Blake's December 22 offer.
'.
Required:
a. Items 61 through 67 relate to whether
a contractual relationship exists between Blake
and Reach. For each item, determine whether the
statement is True CD or False ® and blacken
the corresponding oval on the Objective Answer
Sheet. r -, Blake's December 15 offer had to be in writ-.ing
to be a legitimate offer.
6.
Reach's December 20 fax was an improper
(
method of acceptance.
.
63. Reach's December 20 fax was effective when
sent.
6~ Reach's acceptance was invalid because it
was received after December 20.
655 Blake's receipt of Reach's acceptance created
a voidable contract.
6~ Reach's agreement to a $1,000,000 fee prevented the formation of a contract.
67. Reach's December 20 fa.'{was a counteroffer.
6~ (continued)
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