Contracts, Negotiations, and Uniform Commercial Code
Parties to a contract have legal rights and duties to each other. These rights and duties can be transferred to other parties.
Pursuant to the chapter reading, explain how assigning one’s right in a contract works and what a third-party beneficiary is.
If Bill is hired to build an apartment complex and signs a contract, conditioned on remaining drug free, what type of conditional contract is this? If Bill breaches the contract, why type of damages can the other party recover and what are Bill’s possible defenses?
Research a breach of contract case in the legal database, NEXIS-Uni in the last two years and provide the facts of the case, the parties and their arguments, the issues of law and the holding by the court and reasoning for the decision. Did you agree with the court, why or why not? See the link here: NEXIS-Uni Required
Define the following terms pursuant to the Uniform Commercial Code: firm offer rule, additional terms rule and written confirmation rule. What helps to determine whether an action is a “sale of a good” covered by the UCC or whether it is a service?
Considering the potential sources for liability today, professionals like accountants must be aware of their legal obligations. Under common law and statutory law, outline and explain the concepts in the chapter reading regarding:
Potential liability to clients for breach of contract, negligence, and fraud.Potential liability to third parties, including the Ultramares Doctrine. Potential liability under the Sarbanes-Oxley Act.
Differentiate between negotiable and nonnegotiable instruments. Explain how each of these instruments could be used in the sale of goods.
Widgets, Inc. paid Mary her usual payroll check, but Mary neglected to cash it. Two years later, Mary presented her check for payment. Meanwhile, Widgets, Inc. had declared bankruptcy, but the bank teller paid the check without this knowledge.
Is Mary’s check a negotiable or nonnegotiable instrument? How so?
How do you recommend that the bank address the issue?