Question

Please explain in FULL detail. This is for Business Law

1. On October 1, 2011, Ralph purchased a single family home in Highland park, Illinois for the price of $450,000.00. During the negotiation for said sale, Stanley the seller, represented to Ralph that said home was constructed of fire proof materials and additionally was flood proof. On November 15, 2011 at 2 a.m. a fire broke out in the residence's kitchen, spreading throughout the first level. The fire was finally extinguished after waters from a nearby stream which overflowed its banks during a rain storm flooded the entire home. What remedied would Ralph have against Stanley the seller? Under what theory? Explain in detail.

2. Explain fully what is meant by the term legally sufficient consideration and how this differs from adequate consideration. Give examples of each.

3. Can minors, person under 18 years of age, be held liable for their contracts? Give examples.

4. On January 5, 2012 Lipshitz met with Irving for the purpose of leasing on 2 bedroom apartment from Irving. A written lease was prepared and signed by both parties. The terms of said lease called for rent in the amount of $850 per month for one year with the tenant being responsible for gas and electric. After signing the lease, Lipshitz noticed that the apartment's carpeting was rather worn and stained. Irving then promised to replace the carpeting within the next two months. After 3 months Irving refused to install new carpeting and told Lipshitz that he had changed his mind? Does Lipshitz have any cause of action against Irving for breach of contract? Why? Why not? Explain fully.

5. On October 15, 2011, Frank was in the process of constructing a 27 story apartment building in Chicago. The electrical work was to be done by Sparky’s Electrical Contracting. On October 16, 2011 Sparky informed Frank that he would not be able to perform due to the fact that he owed his supplier $10,000 on an old debt and that the supplier would not tender the supplies now needed until this debt was paid. Frank working against deadlines, phones the supplier and promised to pay Sparky’s debt within 30 days if he would give Sparky the needed supplies. If Frank fails to pay this debt could the supplier enforce this promise? Why? Why not? Explain in detail.

Answer 1

As per Indian contract act 1972., if a contractor furnishes false information intentionally or try to deceive the contractee ,it will be considered as a fraud and the contractee will have the right to rescind the contract or he can sue for damages.

Here in the current case ,stanley(contractor) has furnished false information to ralph(contractee) about the house that the house is made up of fire proof material and flood proof. Now ralph has lost his house due to fire and then flooded by storm.

In the light of the above mentioned provisions ralph had the right to sue stanley for the damages incurred to him or to be faced by him due to the flase information presented by stanley.