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Manufacturers who prepare goods to the buyer's specifications are under exceptionally
stringent warranty obligations for fitness for a particular use.
Pamela was the agent in charge of distribution and collections for the Coble Dairy
Products Cooperative. Thrower operated a grocery store and purchased dairy products
from Coble. Pamela made false invoice sheets, showing delivery to Thrower of greater
quantities than Thrower actually had ordered or received. Pamela collected from
Thrower on the basis of these increased amounts, and then kept for herself the
difference between the increased amounts and the amounts that should have been
charged. When Thrower learned of this, he sued Coble for the excess payments he had
made. Coble denied that Pamela was its agent in making excess collections. Will
Thrower win?
A third person does not have the status of an intended third-party beneficiary unless it is
clear at the time the contract was formed that the parties intended to impose a direct
obligation with respect to the third person.
Law may be classified in terms of principles of law and principles of equity.
Both companies and their employees are subject to criminal penalties for violations of
federal environmental laws.
If an insurer denies liability for a loss, the insured or the beneficiary of the policy has
the burden of proving that there was a loss that came within the coverage of the policy.
The delivery of a check is regarded as an assignment of money on deposit, and the
drawee bank is required to pay the holder the amount of the check.
If a buyer refuses to pay for goods after an acceptance that was not revoked, the seller
may bring action to recover the purchase price and any incidental damages.
Each shareholder owns a proportionate share of the property of the corporation.
A partnership is not dissolved by the death of a partner.
A negotiable instrument may be partly printed and partly typewritten.
In a limited partnership, general partners are not responsible for the debts of the firm.
A factual incapacity may exist when, because of a mental condition caused by
medication, drugs, alcohol, illness, or age, a person does not understand that a contract
is being made or understand its general nature.
A noncompetition covenant may be held invalid because of vagueness concerning the
duration and geographic area of the restriction.
Due diligence is the process by which the buyer of property conducts a thorough
investigation of the property and its uses to determine whether environmental or
nuisance problems exist.
