Do the following problems and for each state in separate paragraphs: a) a summary of the facts, b) the legal issues involved, c) your analysis of the case and d) your conclusion.
Pg. 215, problems 11–1 and 11–2
#11–1: The one-Year Rule
On May 1, by telephone, Yu offers to hire Benson to perform personal services. On May 5, Benson returns Yu’s call and accepts the offer. Discuss fully whether this contract falls under the Statute of Frauds in the following circumstances. (See Statute of Frauds— Writing Requirement.)
- The contract calls for Benson to be employed for one year, with the right to begin performance immediately.
- The contract calls for Benson to be employed for nine months, with the performance of services to begin on September 1.
- The contract calls for Benson to submit a written research report, with a deadline of two years for submission.
#11–2: Fraudulent Misrepresentation
Grano owns a forty-room motel on Highway 100. Tanner is interested in purchasing the motel. During the course of negotiations, Grano tells Tanner that the motel netted $30,000 last year and that it will net at least $45,000 next year. The motel books, which Grano turns over to Tanner before the purchase, clearly show that Grano’s motel netted only $15,000 last year. Also, Grano fails to tell Tanner that a bypass to Highway 100 is being planned that will redirect most traffic away from the front of the motel. Tanner purchases the motel. During the first year under Tanner’s operation, the motel nets $18,000. At this time, Tanner learns of the previous low profitability of the motel and the planned bypass. Tanner wants his money back from Grano. Discuss fully Tanner’s probable success in getting his money back. (See Voluntary Consent.)
