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Herman hires Juanita as his accountant. Juanita commits negligence in preparing
financial statements for a business Herman owns. Several investors rely on the financial
statements and purchase shares of stock in the business. In a state that has adopted the
privity rule, what result?
When a court decides a new question or problem, the decision is called a precedent.
Exoneration is an agreement that a party shall not be liable for loss.
Although processes and machines are eligible for patent protection, manufactures and
compositions of matter are not.
The doctrine of substantial performance is concerned with the issue of whether an
imperfect performance will be considered adequate to discharge one's responsibilities
under a contract.
A coinsurance clause requires the insured to maintain insurance on the covered property
up to a certain amount or a certain percent of the value, generally 80 percent.
Voting trusts are usually illegal.
Modern administrators cannot make laws, but they can argue persuasively before
Congress for the passage of needed legislation.
When the privity rule is applied, a bank lending money to the client of an accountant
cannot sue the accountant for malpractice.
Unless a contract so provides, time is ordinarily not of the essence, and performance
within a reasonable time is sufficient.
A homeowner who supplies the specifications for poured cement walls can hold a
contractor liable for damages when the walls that are poured in exact compliance with
those specifications prove defective.
The power of a court to decide certain types of cases is called jurisdiction.
Dave Tompkins was up late one night watching a television campaign for a charitable
organization. The organization was seeking donations in order to construct a new
building that would serve as the organization's headquarters. One of Tomkins' favorite
performers appeared to promote the campaign, and this prompted Dave to telephone in
a pledge. Tomkins pledged $10,000 to the charity and, feeling good about his action,
finally went to sleep. The next morning, Tomkins regretted making the pledge because
its enforcement would cause great personal financial hardship. Will the charity be able
to legally enforce the pledge Tomkins made? If so, why might the charity choose not to
enforce a lawful pledge?
Silence of Congress indicates that Congress is unwilling to make changes to an existing
law.
The promise of a creditor to refrain from collecting a debt is consideration for a promise
by the debtor to modify the terms of the transaction.
In order to be eligible for Chapter 13 bankruptcy an individual must have less than
$1,081,400 in unsecured debt.
In a federal system, a central government is given power to act nationally, while states
administer to local concerns.
