The process of incorporation involves the expenditure of funds for organizational
expenses.
A reward offered to the public for the return of lost property is not considered an offer.
A limited liability company may hold property in its own name.
A board of directors’ oversight responsibilities for its company’s business affairs do not
include evaluating management’s performance, approving the hiring of executives and
approving executive compensation plans; instead, such responsibilities are for the
shareholders to assume at either regular or special shareholder meetings.
If a crime does not hurt an identifiable person, it is not a tort.
An endorsement “Pay to Donald Hames, Cathy Dukes” is not valid as an endorsement
because it does not contain the words “order” or “bearer.”
A quasi contract may arise in a situation in which no contract exists.
After rejecting goods, a buyer may continue to exercise rights of ownership with
respect to the goods until the seller sends explicit instructions for return.
If two firms consolidate, the new corporation usually succeeds to the rights, powers and
immunities of its component parts.
Breach of contract remedies are available to third parties against accountants because
they are ordinarily considered third-party beneficiaries of contracts with accountants.
Walker Meeks is currently a party to two contracts. On the first contract, he has agreed
to paint a portrait of a gentleman riding a horse. This portrait is for the wall of the
gentleman’s study. The gentleman chose Meeks for his realism in portraying the true
feelings behind portrait models. Meeks’ second contract is to paint the house of Sylvia
Sneed.
Meeks is offered an employment contract for a large sum of money. He wishes to
accept, but this would render him unable to complete the aforementioned contracts.
Meeks delegates the painting of the portrait to his friend Bob, an impressionist, and
delegates the painting of Sylvia’s home to Ted, a professional house painter.
Neither the gentleman nor Sylvia intends to allow the delegation to occur. Comment on
the probable outcome of the dispute.
Certain persons cannot make contracts that will bind them.
Both companies and their employees are subject to criminal penalties for violations of
federal environmental laws.
In almost all states, a periodic tenancy is implied if the tenant, with the consent of the
landlord, stays in possession of the property after a tenancy for years.
Public zoning and restrictive covenants in deeds have a similar purpose, but each has a
different source of authority.