PART A: Answer each of the following questions in a composition of 10 to 20 sentences. Each answer is worth 20 points.
1. Bob and Shirley attempted to form a corporation for the restaurant Bob & Shirley's. Bob and Shirley inadvertently failed to file the articles of incorporation. Can they still be treated as a corporation? If yes, how and in which situations?
2. Terry, an adult, enters into a contract with Curtis, a 16-year-old, who lives in his own apartment and supports himself with a part-time Job. Terry and Curtis have a dispute about the contract, and the court must decide if it's enforceable. What argument can Curtis make against enforcement? What counterargument can Terry make?
3. Discuss the four elements of a contract, and give an example of each.
PART B: Answer each of the following questions in 2 to 4 sentences. Each answer Is worth 5 points.
1. Bud had his agent, Brody, meet with Joey to work out the details of an important business contract. Joey didn't know that Brody was acting on Bud's behalf. If Joey thinks the contract isn't being adequately performed, whom may he hold liable? Why?
2. Sally and Burt enter an agreement in which Sally agrees to purchase Burt's house. Burt owes Lisa a large amount of money, and in the agreement, Sally agrees to pay the money for the house directly to Lisa. What rights, if any, does Lisa possess under this contract? Why does she possess these?
3. Marsha, a California citizen, is involved in an automobile accident with another driver, Jan, also a California resident. Marsha has medical bills and other damages totaling $50,000. Marsh wants to sue Jan. Should she file in federal court or state court? Why?
4. Alec and James •are involved in a lawsuit against one another. Both wish to avoid a trial but don't want to waste their time with an alternative dispute resolution If a result won't be assured. Neither trusts the other to make concessions that would result in a fair settlement. What type of alternative dispute resolution should the parties use? Why?
5. Bob owes Elmer $500. Elmer signs a document stating, "l transfer my right to collect $500 from Bob to attempts to collect, and Bob claims that only Elmer can collect because Lucille wasn't an original party to the transaction that created the debt. Is Bob correct?
6. What Is substantial performance, and how does it affect one's duties. under a contract?
7. Paul verbally promises to give Mary support for life if she agrees to marry him. Later, they divorce, and Mary claims that Paul has a contractual duty to support her per his promise. Does he? Why or why not?
8. How does the parole evidence rule affect written agreements?
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