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Select two of the scenarios listed below and explain the best solution for each. Include comments re ...


Select two of the scenarios listed below and explain the best solution for each. Include comments related to any ethical issues that arise. You should locate at least one scholarly source from the SUO Library or one case that has been decided or is currently pending to support your answer. Scenario 1 - Third Party Rights Bobby was attending college two hundred miles from his home for the fall semester. Bobby’s wealthy aunt, Brenda, decides to give Bobby a car for Christmas. In November, Brenda makes a contract with Walker Ford to purchase a new car for $21,800 to be delivered to Bobby just before the Christmas holidays, in mid- December. The title to the car is to be in Bobby’s name. Brenda pays the full purchase price, calls Bobby and tells him about the gift, and takes off for a three-month vacation in Mexico. Is Bobby an intended third party beneficiary of the contract between Brenda and Walker Ford? Suppose that Walker Ford never delivers the car to Bobby. Does Bobby have the right to sue Walker Ford for breaching its contract with Brenda? Explain. Scenario 2 - Statute of Frauds Kathy agreed to purchase specially made cartons for one-of a kind wood sculptures from Pierce Packaging. Pierce faxed an invoice to Kathy reflecting a purchase price of $35,000, with a 20 percent down payment and the “balance due before shipment.” Kathy paid the down payment. Pierce finished the cartons and wrote Kathy a letter telling her to “pay the balance due or you will lose the down payment.” By then, Kathy had lost her customers for the cartons, could not pay the balance due, and asked for the return of her down payment. Did these parties have an enforceable contract under the Statute of Frauds? Explain. Scenario 3 – Breach and Remedies Candace Dixon agreed to sell Alana Mendes a house in Alabama for $205,000. The sale was supposed to close by November 30, when the parties were to exchange the deed for the price. The contract included a provision that “if Seller is unable to convey good, clear, insurable, and marketable title, Buyer shall have the option to: accept such title as Seller is able to convey without reduction of the Purchase Price, or cancel this Agreement and receive a return of all Deposits.” An examination of the public records revealed that the house did not have marketable title. Mendes offered Dixon additional time to resolve the problem, and the closing did not occur as scheduled. Dixon decided “the deal is over” and offered to return the deposit. Mendes refused and, in mid-December, decided to exercise her option to accept the house without marketable title. She notified Dixon, who did not respond. She then filed a lawsuit against Dixon in a state court. Discuss whether Dixon breached the contract and decide in whose favor the court should rule. Assume that Dixon breached the contract and determine what the appropriate remedy is in this situation. Scenario 4 – Third Parties Ronny enters into a contract with Sean to paint Sean’s house. Ronny paints Sean’s house an extremely hideous orange and blue even though Sean specified tan. Sean and his neighbor Chris are both fans of the Florida Seminoles and are furious to see the house painted in Florida Gator colors . Sean and Chris threaten to sue Ronny. Evaluate the arguments each party will make, determine the outcome and support your answer with appropriate sources.





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Scenario 1: Third Party Rights

Question: Is Bobby an intended third-party beneficiary of the contract between Brenda and Walker Ford? Suppose that Walker Ford never delivers the car to Bobby. Does Bobby have the right to sue Walker Ford for breaching its contract with Brenda? Explain.

In this scenario, Bobby is indeed an intended third-party beneficiary of the contract between Brenda and Walker Ford. To fully understand this, we need to examine the legal principles surrounding third-party beneficiaries in contract law.

A third-party beneficiary is someone who, while not a party to the contract, stands to benefit from the contract’s performance. In order for a third-party beneficiary to have the right to enforce the terms of the contract, they must be an intended beneficiary as opposed to an incidental beneficiary. An incidental beneficiary is someone who benefits from the contract as a side effect, without the contracting parties intending to confer any benefit on them.

There are two types of third-party beneficiaries:

  1. Intended beneficiaries – those who the parties to the contract intended to benefit, either explicitly or implicitly.
  2. Incidental beneficiaries – those who happen to benefit from the contract but were not intended by the contracting parties to be the recipient of a benefit.

In this case, Brenda's contract with Walker Ford is explicitly made with the intent to benefit Bobby. The contract specifies that the title to the car will be in Bobby’s name, and the car is intended as a gift for Bobby. Brenda, as the buyer, is paying for the car, and Bobby is the ultimate recipient. This creates a clear intention on Brenda's part to benefit Bobby directly.

Legal Precedent and Analysis: The Restatement (Second) of Contracts § 302 outlines the criteria for third-party beneficiaries. According to this section, a third-party can enforce a contract if the contract was made with the intent to benefit that party. Bobby, in this scenario, is the person for whom the contract was made, and Brenda's communication to him about the car further solidifies his status as an intended

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