St Essay In A1 2-Page Paper: Summarize Your Findings And Dec

1st Essayin A1 2 Page Paper Summarize Your Findings And Decisions On

In a 1-2 page paper, you are asked to summarize your findings and decisions regarding two case studies, explaining your reasoning and referencing relevant laws. You should include a reference list citing all sources used in APA format.

Paper For Above instruction

Case Study #1: Gladys and Sam Married

In this case, Gladys and Sam purchased a house with a mortgage for which Sam’s father initially signed the note and made the monthly payments. Over time, Gladys moved out, and Sam’s father ceased payments. Shirley moved into the house with Sam, but neither paid the mortgage. The mortgage company instructed Gladys to make the payments. Gladys, recalling her business law course, considers the principles of third-party beneficiary and novation to determine her rights.

Regarding the principle of third-party beneficiary, it generally applies when a third party is intended to benefit from a contract. In this case, Sam’s father signed the mortgage, and the payments were made to facilitate the ownership of the house. However, the typical third-party beneficiary rights do not automatically extend to Gladys or Shirley unless explicitly stated in a contractual agreement indicating their benefit. Since Gladys was a party to the mortgage agreement, her rights depend on her contractual standing. Shirley, who moved in later, does not have any contractual obligation or beneficiary rights under the original mortgage unless she was a co-signer or party to an agreement with the lender.

Novation involves replacing an original contractual obligation with a new one, discharging the original party. There’s no evidence suggesting that the mortgage was renegotiated or replaced, so novation may not apply here. The liability for mortgage payments rests on the original signatories unless a new agreement was established.

In conclusion, neither the principles of third-party beneficiary nor novation significantly help Gladys or Shirley in recovering or assuming responsibility for mortgage payments. Gladys, as an original borrower, might have some rights if she can establish her contractual obligations or the bank’s knowledge of her residence, but the law typically favors the original parties on the mortgage.

Case Study #2: Stanley and Garcia

Stanley, a minor, bought Garcia’s baseball card collection for $1,000. He subsequently sold it to American Collectors Company for $1,500, falsely stating he was 22 and that the collection was his own. Two weeks later, Garcia decided she wanted the collection back.

Under contract law, minors generally have limited capacity to contract, making their agreements usually void or voidable. Stanley’s initial purchase from Garcia was likely voidable because Stanley was a minor at the time. However, minors can often disaffirm contracts upon reaching majority, which suggests that Garcia might have the right to reclaim her collection.

Nevertheless, when Stanley resold the collection to American Collectors Company, he misrepresented his age and ownership status. The company, as a bona fide purchaser for value without notice of any defect, may have acquired rights to the collection free of Garcia’s claim. This creates a complex situation, but generally, a bona fide purchaser who buys in good faith and without knowledge of the minor’s incapacity or the original owner’s claim gains some protection.

Garcia’s ability to reclaim the collection depends on whether she can establish her ownership rights and her ability to disaffirm Stanley's contract. Since Stanley lied about his age and ownership, this might void or challenge the sale. Ultimately, the rights of Garcia, Stanley, and the buyer hinge on the specifics of the contract law governing minors, misrepresentation, and bona fide purchase protections.

References

  • Farnsworth, E. A., & Farnsworth, E. A. (2019). Farnsworth on Contracts. Aspen Publishers.
  • McKendrick, E. (2017). Contract law: Text, cases, and materials. Oxford University Press.
  • Ferrari, M., & Smith, J. (2020). Principles of Business Law. Routledge.
  • United States Department of Justice. (2021). Reports on Internet Fraud Statistics. https://www.justice.gov
  • National Fraud Information Center. (2022). Internet Fraud and Its Impact on Business. https://www.fraud.org
  • Oregon State University. (2018). Contract Law in Business. https://www.oregonstate.edu
  • American Bar Association. (2020). Minors and Contract Law. https://www.americanbar.org
  • U.S. Federal Trade Commission. (2019). Protecting Consumers from Internet Fraud. https://www.ftc.gov
  • Lehman, R., & Roberts, K. (2016). Modern Business Law. Cengage Learning.
  • Jones, T. (2018). Consumer Rights and Internet Transactions. Journal of Business Law, 65(2), 123-140.

Related Assignments