MEE guides
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from Contracts — Substantial Performance · Feb 2020 ↗
A homeowner entered into two separate contracts with a contractor for the renovation of her kitchen and the remodeling of her bathroom… Despite the clear contract language, the contractor installed vinyl flooring… “I made an executive decision to go with vinyl.”
← willful breach — cuts hard against substantial performanceWhether the contractor substantially performed the kitchen contract, so that the homeowner still owes the final $8,000.
A party who substantially performs may recover the price less damages for the defect… a willful breach weighs heavily against substantial performance.
The homeowner wanted linoleum for particular, non-economic reasons (green household, nostalgia)… the contractor’s willful substitution of vinyl shows a lack of good faith.
The homeowner is excused from the final $8,000 and owes nothing more under the kitchen contract.
Contracts 8
Under the sea
On January 2, a boat builder and a sailor entered into a contract pursuant to which the builder was to sell to the sailor a boat to be specially manufactured for the sailor by the builder. The contract price was $100,000.…
← sale of GOODS → UCC Article 2 governsWhether the sailor's October 31 letter was a legally effective demand for adequate assurance of the builder's performance. Goods → UCC. Is a demand…
Because the contract is for the sale of goods (a boat), it is governed by UCC Article 2. When reasonable grounds for insecurity arise about a party's performance, the…
Here, the specially manufactured boat is a sale of goods, so the UCC governs. When the sailor learned that the builder's workers had been on strike since mid-October…
Therefore, the October 31 letter was a valid, justified demand for adequate assurance of due performance under the UCC. Valid demand for adequate…
Under the sea
A homeowner and his neighbor live in houses that were built at the same time. The two houses have identical exteriors and are next to each other. The homeowner and his neighbor have not painted their houses in a long time, and the exterior…
← valid K: painter owes a duty to paint the homeowner's houseWhether the homeowner validly assigned his contract rights to the neighbor, so that she can enforce the painting contract against the painter. Can…
A party may assign its contract rights to a third party without the obligor's consent, and the assignee may then enforce the contract, unless the assignment would…
Here, the homeowner assigned his right to the painter's performance to the neighbor. Although the painter would paint a different house, the facts state there is no…
Therefore, the neighbor would succeed against the painter for refusing to paint her house. Yes: valid assignment; the neighbor can enforce.
Under the sea
A music conservatory has two concert halls. One concert hall had a pipe organ that was in poor repair, and the other had no organ. The conservatory decided to repair the existing organ and buy a new organ for the other concert hall. After…
← SERVICE contract → common law governsWhether the conservatory must pay the additional $60,000 to modify the common-law organ-repair contract. Same work, more money: enforceable?
A promise must be supported by consideration. Under the pre-existing duty rule, a promise to do only what one is already contractually bound to do is not consideration…
Here, the repair is a service contract governed by the common law. The business already owed a duty to repair the organ for $100,000 and promised nothing new for the…
Therefore, the conservatory most likely need not pay the additional $60,000 for the repair. No: unenforceable for lack of consideration.
Under the sea
On March 1, a contractor and an owner of movie theaters signed an agreement providing that, no later than August 15, the contractor would install seats in the owner’s new movie theater. The agreed-upon price was $100,000, which was less…
← cover: $150k − $100k = $50k direct/expectation damagesWhether the owner's damages include the $50,000 it paid the substitute above the original $100,000 price. Recover the extra cover cost?
Contract damages protect the injured party's expectation interest, putting it in as good a position as if the contract had been performed. When a contractor breaches…
Here, the owner would have paid $100,000 but had to pay the only available substitute $150,000, so it is $50,000 worse off than if the contractor had performed. That…
Therefore, the owner may recover the $50,000. Yes: $50,000 recoverable.
Under the sea
On June 15, a professional cook had a conversation with her neighbor, an amateur gardener with no business experience who grew tomatoes for home use and to give to relatives. During the conversation, the cook mentioned that she might be…
← is he a MERCHANT? key to the firm-offer ruleWhether the tomato transaction is governed by UCC Article 2. Goods or not? sets the rules.
UCC Article 2 governs transactions in goods. Goods are things movable at identification and include growing crops. Where the UCC applies, common-law contract principles…
Here, the deal is for tomatoes, which are growing crops and therefore goods, so Article 2 governs, supplemented by common law. The document the gardener signed, which…
Therefore, the transaction is governed by UCC Article 2, supplemented by common law, and the signed document was an offer. UCC Article 2 applies. Was…
Under the sea
A woman whose hobby was making pottery wanted to improve her pottery skills both for her own enjoyment and to enable her to create some pottery items that she could sell. Accordingly, she entered into negotiations with an experienced…
← SERVICES aspect (the apprenticeship)Whether the common law or UCC Article 2 governs this mixed goods-and-services contract. Goods, services, or a hybrid?
Sales of goods are governed by UCC Article 2; most other contracts by the common law. For a mixed (hybrid) contract involving both goods and services, courts apply the…
Here, the deal has both a goods aspect (the $5,000 equipment and tools she keeps) and a services aspect (the apprenticeship training). The arguments cut both ways: by…
Therefore, governing law turns on the predominant purpose; if the training predominates, the common law governs the parol-evidence and modification…
Under the sea
A homeowner entered into two separate contracts with a contractor for the renovation of her kitchen and the remodeling of her bathroom. The homeowner has refused to pay the contractor on both contracts because of dissatisfaction with his…
← services predominate → common law (not UCC perfect tender)Whether these renovation contracts are governed by the common law or by UCC Article 2. Common law or UCC?
Sales of goods are governed by UCC Article 2; most other contracts by the common law. A mixed goods-and-services contract is governed, in whole, by the law of its…
Here, although the homeowner acquired some goods (flooring and fixtures), the price turned mostly on labor and she sought high-quality installation services, so the…
Therefore, the common law governs both contracts, so the substantial-performance doctrine, not perfect tender, applies. Common law governs both.
Under the sea
Buyer manufactures scarves from various fabrics, including silk. It buys silk from various fabric importers including Seller, from whom Buyer has made over 250 purchases of silk during the last six years. In each of these earlier…
← both are MERCHANTS (deal in goods of the kind)Whether the January 9 oral agreement is an enforceable contract despite the Statute of Frauds. Oral deal for goods, enforceable?
A contract for the sale of goods for $500 or more must be evidenced by a writing signed by the party to be charged. Under the Goods ≥ $500 → signed writing; merchant…
Here, the silk deal is a sale of goods for $100,000, so the Statute of Frauds applies. Both parties are merchants (Buyer manufactures scarves from silk; Seller imports…
Therefore, there is an enforceable contract between Buyer and Seller. Yes: enforceable (confirmatory memo).
Constitutional Law 5
Under the sea
The Church of Peace (the Church) is a religious organization that advocates "peace to everyone." Recently, a Church chapter (Chapter) was organized in the town of Homestead. Chapter members decided to spread the Church's message to the…
← sidewalk = traditional public forum Many recipients threw the leaflets on the ground; the town spentWhether the First Amendment bars enforcing a total ban on public-sidewalk leafleting against the chapter. Is the ordinance a valid time/place/manner…
A public sidewalk is a traditional public forum. A contentbased restriction there gets strict scrutiny; a content-neutral time, Public forum. Content-neutral TPM…
Here, the ban is content-neutral (it targets the method, not the message) and keeping streets clean is significant, but a total ban on all leafleting is not narrowly…
Therefore, the ordinance fails and cannot be enforced against the chapter. Unconstitutional as applied.
Under the sea
State A, a leader in wind energy, recently enacted the “Green Energy Act” (“the Act”). Section 1 of the Act requires that 50% of the electricity sold by utilities in the state come from “environmentally friendly energy sources.” Wind…
← TYPE, not ORIGIN → facially neutralWhether requiring 50% of electricity to come from “environmentally friendly” sources (which include in-state wind but exclude out-of-state natural…
A law is facially discriminatory only if it draws lines based on the geographic origin of goods; if it lines up on some other basis and only incidentally burdens…
Here, the Act classifies by energy type, not origin: wind qualifies wherever generated and gas is disfavored wherever sourced, so it is facially neutral. That in-state…
Therefore, Section 1 is most likely constitutional: facially neutral and, under a balancing test, the incidental burden does not clearly outweigh…
Under the sea
State A, suffering from declining tax revenues, sought ways to save money by reducing expenses and performing services more efficiently. Accordingly, various legislative committees undertook examinations of the services performed by the…
← cost + efficiency = legitimate interestsWhether the Act's mandatory retirement age of 50 for firefighters violates the Equal Protection Clause of the Fourteenth Amendment. Age…
The Equal Protection Clause bars a state from denying any person the equal protection of the laws. The level of review depends on the classification: strict scrutiny for…
Here, the Act draws a line based on age, and because age is not a suspect classification, rational-basis review applies. State A has legitimate interests in safe and…
Therefore, Question 1 resolves for the state: the Act survives rational-basis review and most likely does not violate the Equal Protection Clause.…
Under the sea
Businesses make billions in payments daily by electronic funds transfers. Banks use passwords and encryption to verify orders, but thieves sometimes cause unauthorized transfers. To combat this fraud, State A passed a law requiring all…
← the challenged law. Applies to ALL banks = facially neutral Experts dispute whether biometric identification…Whether the bank can maintain a suit in federal court against State A for money damages. Damages against the State itself → sovereign-immunity…
The Eleventh Amendment bars a private party from suing a nonconsenting state for damages in federal court (state sovereign immunity). The bar is overcome only if the…
Here, the bank, a State B resident, sues State A itself for $2 million in damages in federal court. That is precisely a suit against a state for money, which sovereign…
Therefore, the bank cannot maintain the damages suit against State A; a federal court would dismiss it on Eleventh Amendment grounds if the state…
Under the sea
AutoCo is a privately owned corporation that manufactures automobiles. Ten years ago, AutoCo purchased a five-square-mile parcel of unincorporated land in a remote region of the state and built a large automobile assembly plant on the…
← performing traditional municipal functions → a company townWhether a private company running Oakwood is a state actor subject to the First Amendment. Is there state action at all?
Constitutional rights bind only government actors. Under the public-function theory, a private entity that performs functions traditionally and exclusively reserved to…
Here, the automaker supplies security, fire, sanitation, public streets and shops, and the only school, the full bundle of municipal services, and the district is open…
Therefore, Oakwood and its school are state actors bound by the First Amendment. State action exists; the threshold is met.
Corporations 6
Under the sea
The board of directors of a commercial real estate development corporation consists of the corporation's chief executive officer (CEO) and three other directors, who are executives at various other firms. The corporation owns a commercial…
← stale $12 to $15M appraisal; a $13M offer already rejected asWhether the sale of the tower to the directors' LLC is a director's conflicting-interest transaction. threshold for the BJR question
G/R: A director's conflicting-interest transaction is one in which the corporation is on one side and a director, or an entity in which a director has a material…
Here, all four directors own 25% of the LLC that is buying the tower, so every director has a material financial interest and sits on both sides of the sale. This is a…
Therefore, the tower sale is a director's conflictinginterest transaction. sets up loss of the BJR Issue 2: Does the Business Judgment Rule Apply?…
Under the sea
Mega Inc. is a publicly traded corporation incorporated in a state whose corporate statute is modeled on the Model Business Corporation Act (MBCA). Mega’s articles of incorporation do not address the election of directors or amendment of…
← may shareholders amend bylaws on director-nomination procedures?Whether the investor's proposed proxy-access bylaw is inconsistent with state law. Can shareholders adopt this bylaw at all?
Under the MBCA, shareholders have the power to amend the corporation's bylaws, and the bylaws may contain any provision not inconsistent with law or the articles.…
Here, the proposal sets a procedure for shareholder nomination of directors (proxy access for 3%/1-year holders), a classic proper subject for the bylaws that the MBCA…
Therefore, the proposed bylaw is not inconsistent with state law, and the shareholders may adopt it. Not inconsistent; shareholders may adopt it.
Under the sea
Parent Inc., a company in the renewable energy business, has several subsidiaries. In all cases, Parent maintains control of its subsidiaries by selecting the members of each subsidiary’s board of directors, most of whom also serve as…
← controlling shareholder → fiduciary duties to the sub and itsWhether Parent, as controlling shareholder, breached a fiduciary duty by causing HomeSolar to adopt a no-dividend policy. Which standard governs the…
A controlling shareholder owes fiduciary duties of loyalty and care to the controlled corporation and its minority shareholders. But where the challenged action is not…
Here, the no-dividend policy applies equally to all HomeSolar shareholders, including Parent, so Parent gains nothing to the exclusion of the minority; it is not…
Therefore, Parent likely did not breach any duty with respect to the no-dividend policy. No breach (protected by the business judgment rule).
Under the sea
A shareholder owns 100 shares of MEGA Inc., a publicly traded corporation. MEGA is incorporated in State A, which has adopted the Model Business Corporation Act (MBCA). The shareholder read a news story in a leading financial newspaper…
← credible basis of possible corporate illegalityWhether the shareholder is entitled to inspect MEGA's board minutes and accounting records. Does she have a right to these documents?
A shareholder may inspect board minutes and accounting records upon a written demand made in good faith, for a proper purpose reasonably related to her interest as a…
Here, the shareholder seeks minutes and accounting records to decide whether to sue over the alleged illegal bribes, a proper purpose tied to protecting her economic…
Therefore, the shareholder is entitled to inspect the board minutes and accounting records related to the bribes. Yes: entitled to the related…
Under the sea
Acme Inc. manufactures building materials, including concrete, for sale to construction companies. To create a market for its building materials, Acme enters into agreements with construction companies under which Acme and the construction…
← member-managed + 55% control + manager = Acme owes fiduciary dutiesWhether Acme, as the controlling and managing member, owes a fiduciary duty that bars it from refusing to have A-B LLC pursue the concrete claim…
G/R: In a member-managed LLC, each member owes the LLC and the other members a duty of loyalty (act in the LLC's best interest, avoid self-dealing and conflicts, and…
Here, Acme is the 55% member and the manager, and it is the very party the LLC would sue. By using its control to block a valid $15M claim against itself, Acme placed…
Therefore, statement (1) is incorrect: Acme owes duties of loyalty and care and may not block the claim. lawyer wrong on (1) Issue 2: Brown's…
Under the sea
Two siblings, a brother and a sister, decided to start a bike shop with their cousin. They filed a certificate of organization to form a limited liability company. The brother and the sister paid for their LLC member interests by each…
← silent on management = membermanaged by default; express limit onWhether the LLC is member-managed or managermanaged. Question 1.
G/R: An LLC is member-managed by default unless the certificate of organization or the operating agreement provides for manager-management. In a member-managed LLC each…
Here, neither the certificate nor the operating agreement appoints managers, and all three members actively run the shop. The default governs. no manager provision…
Therefore, the LLC is member-managed, so each member is an agent for ordinary business. sets up authority analysis Issue 2: The Tire Contract Issue.…
Civil Procedure 3
Under the sea
During a snowstorm, a woman and a man were driving in opposite directions on a state highway when their cars collided head-on in the middle of the road. At the moment of impact, the locking mechanism on the woman’s seat belt malfunctioned…
← first accident (the man's alleged negligent driving)Whether the woman properly joined the man, AmCo, and CarCo as defendants in a single action. Can these three ride in one suit?
G/R: under Rule 20(a)(2), defendants may be joined in one action if (1) the claims against them arise out of the same transaction, occurrence, or series of transactions…
Here, the claims arise from a single series of related occurrences: the ambulance crash would not have happened but for the first collision and it exacerbated the same…
Therefore, the woman properly joined all three defendants under Rule 20. Yes: joinder proper.
Under the sea
MedForms Inc. processes claims for medical insurers. Last year, MedForms contracted with a data entry company ("the company") to enter information from claims into MedForms's database. MedForms hired a woman to manage the contract with the…
← Her federal civil-rights claim: the anchor claim, separate from theWhether MedForms properly served the contractor with process. Ground (a): start with service.
G/R: under Rule 4(h) a corporation may be served by delivering the summons and complaint to an officer, a managing or general agent, or an agent authorized to receive…
Here, MedForms delivered the summons and complaint to the contractor's CEO, an officer, which the federal rule expressly authorizes. That both states allow service only…
Therefore, Section 1: service was proper and the motion to dismiss for insufficient service should be denied. Section 2: Subject-Matter Jurisdiction…
Under the sea
A 55-year-old woman had been employed for 30 years as a paralegal at a law firm in State A. One year ago, a 28- year-old male attorney became the firm's paralegal manager. The attorney began criticizing the woman's work and berating her on…
← Age-based abuse then replacement by a 22-year-old: the core of the federalWhether the court has original jurisdiction over the defamation claim standing alone. Question 1: start with original jurisdiction.
G/R: federal courts have federal-question jurisdiction over claims arising under federal law on the face of a well-pleaded complaint, and diversity jurisdiction over…
Here, defamation is a state-law tort with no federal question, and both parties are State A citizens, so there is no diversity. The defamation claim has no independent…
Therefore, Section 1: the court lacks original jurisdiction over the defamation claim standing alone. Section 2: Supplemental Jurisdiction (Question…
Evidence 3
Under the sea
The city police department received a 911 call regarding a domestic violence incident. The caller said that she was staying with her sister and her sister's boyfriend. The caller said that she had called the police because her sister's…
← Live play-by-play of the attack: present sense impression and excitedWhether the caller's statements to the 911 dispatcher are inadmissible hearsay. Objection (a): the caller is absent, so start with hearsay.
G/R: hearsay is an out of court statement offered to prove the truth of the matter asserted, and it is inadmissible unless an exception applies. Present sense…
Here, the caller narrated the attack to the dispatcher as it unfolded, so the statements describe an event as she perceived it and qualify as present sense impressions.…
Therefore, Section 1: the caller's 911 statements clear the hearsay bar and the objection is overruled. Section 2: Caller's 911 Statements…
Under the sea
On May 5, at 2 p.m. in City Park, Victim was hit from behind and temporarily knocked unconscious. Upon regaining consciousness moments later, Victim discovered that his bag containing valuables had been stolen. While investigating the…
← She earlier called him violent and feared: her total denial looks likeWhether the witness's trial claim of no memory and her denials may be impeached with her prior signed statement, and whether the statement may come…
G/R: a witness may be impeached with a prior inconsistent statement. A claim of memory loss can be treated as inconsistent with a prior statement on the same point…
Here, the witness swore she had no memory, had never seen the defendant, and never spoke to the officer, flatly contradicting her signed statement. Because she had…
Therefore, Section 1: the judge should have permitted the questioning and admitted the statement to impeach; sustaining the objections was error.…
Under the sea
A woman who owns a motorized scooter brought her scooter to a mechanic for routine maintenance service. As part of the maintenance service, the mechanic inspected the braking system on the scooter. As soon as the mechanic finished…
← Sent the instant the service ended: a present sense impression.Whether the authenticated text message is relevant and admissible. Item 1: relevance, then hearsay.
G/R: evidence is relevant if it has any tendency to make a consequential fact more or less probable. G/R: hearsay is an out of court statement offered for the truth of…
Here, the message makes it more probable that the brakes were defective and that the woman knew they needed repair, both consequential to negligence, so it is relevant.…
Therefore, Section 1: the text message is relevant and admissible to show the woman's knowledge and as a present sense impression. Section 2: The…
Torts 3
Under the sea
Susan, a student at University, lived in a University dormitory. Access to Susan's dormitory was restricted to dormitory residents and guests who entered the dormitory with a resident. Entry to the dormitory was controlled by key cards.…
← a landlord must protect tenants from foreseeable crime in commonWhether University, as landlord, is liable to Susan for negligence. Does a landlord duty attach? TORTS—DUTY: LANDLORD, RESCUER & PSYCHIATRIST (JUL 12)
G/R: negligence requires duty, breach, actual and proximate causation, and damages. A landlord owes tenants a duty to take reasonable measures to protect them against…
Here, University controlled the dorm's common areas and had secured the rear door with a deadbolt, showing the criminal risk was foreseeable; leaving that lock broken…
Therefore, University is likely liable to Susan for her physical injuries. University liable.
Under the sea
For many years, a furniture store employed drivers to deliver furniture to its customers in vans it owned. Several months ago, however, the store decided to terminate the employment of all its drivers. At the same time, the store offered…
← the label says IC, but courts look to the right to control, not the labelWhether the driver is an employee or an independent contractor. Vicarious liability turns on this.
G/R: an agent is an employee if the principal has the right to control the manner of performance; otherwise the agent is an independent contractor. Factors include the…
Here, the drivers are paid hourly, work indefinitely on the store's schedule, use vans leased from and paid for by the store, need little special skill, and do work…
Therefore, the driver is an employee, so the store may be held vicariously liable; the first argument fails. Store's first defense fails. Argument…
Under the sea
After a dump truck unloaded gravel at a road construction job site, the trucker negligently drove away with the truck bed still in a raised position. The raised truck bed hit an overhead cable, causing it to fall across the highway. The…
← the setup: a downed cable that must be dealt withWhether the employee was acting within the scope of his employment when he authorized the crew to move the cable. Vicarious liability starts here.
G/R: under respondeat superior a principal is liable for an employee's torts committed within the scope of employment. Conduct is within scope when it is of the kind the…
Here, the employee's duties were expressly limited to assessing damage and reporting, but he was at the scene during The narrow description does not shrink scope when…
Therefore, the employee acted within the scope of employment and the company is liable; the first argument fails. Company liable via respondeat…
Criminal Law 3
Under the sea
A defendant, age 25, is charged in State A with armed robbery. According to the indictment, on June 1, the defendant went into a store, pulled out a gun, and said to a cashier, "Give me all your money or I'll shoot you!" The cashier gave…
← possible delusion → a disease of the mind at the time of the act?Whether the defendant is presently competent to stand trial. Competent now?
COMPETENCY: a defendant may not be tried unless he can (1) understand the nature and consequences of the proceedings and (2) assist properly in his own defense. This is…
Here, the brain trauma leaves the defendant unable to remember the robbery or to understand counsel, the judge, and the proceedings, so he cannot make decisions like…
Therefore, the defendant is incompetent and the prosecution should be suspended. Section 1: yes, suspend. M'Naghten: Disease of the Mind (At the Time…
Under the sea
At 9:00 p.m. on a Sunday evening, Adam, age 18, proposed to his friend Bob, also age 18, that they dump Adam's collection of 2,000 marbles at a nearby intersection. "It'll be funny," Adam said. "When cars come by, they'll slip on the…
← conscious disregard of a known risk = recklessness (Adam)Whether Adam acted with the mens rea required for involuntary manslaughter. Reckless or criminally negligent?
INVOLUNTARY MANSLAUGHTER: an unintentional killing without malice caused by recklessness (conscious disregard of a known substantial risk of death or serious bodily…
Here, Adam wanted cars to slip and lose control and even predicted maybe there will even be a crash, showing he consciously disregarded a known risk of a collision, a…
Therefore, a jury could properly find Adam acted recklessly. Recklessness satisfied. Adam: Causation & the Unbelted Child Issue. Whether Adam's…
Under the sea
Customer went to Star Computers (Star) to buy a refurbished computer. Upon arrival, Customer was approached by Owner, who identified himself as the owner of Star. Owner directed Customer to a refurbished desktop computer and told Customer…
← puffery / opinion, not a statement of factWhether the owner obtained the customer's property by false pretenses. Did he obtain property by false pretenses?
FALSE PRETENSES: (1) a false representation of a present or past material fact; (2) that causes the victim to pass title (not mere possession); (3) to the defendant; (4)…
Here, the owner's claims induced a sale, and the customer, relying on them, handed over $250 cash, so title passed. Elements (2) and (3) are met; the contest is over…
Therefore, the case turns on whether a false statement Remaining fight: falsity, knowledge,
Criminal Procedure 1
Under the sea
A woman is on trial for the attempted murder of a man whom she shot with a handgun on March 1. According to a State A police report: The woman started dating the man in August. A few months later, after the woman broke up with him, the man…
← offered for effect on the listener, not its truth → nonhearsayWhether the woman's testimony repeating the man's threat is inadmissible hearsay. Hearsay?
HEARSAY is an out-of-court statement offered for the truth of the matter asserted; it is inadmissible unless an exception applies. A statement offered for a non-truth…
Here, self-defense turns on the woman's reasonable belief of imminent harm, so the threat is offered not to prove its content but to show the information she had…
Therefore, the statement is not hearsay and is admissible. Item 1: admissible.
Real Property 3
Under the sea
Seventeen years ago, a property owner granted a sewer-line easement to a private sewer company. The easement allowed the company to build, maintain, and use an underground sewer line in a designated sector of the owner's three-acre tract.…
← Adverse possession: actual, open, exclusive, hostile, and continuous forWhether the buyer acquired title to the tract or any portion of it by adverse possession. The core question.
G/R: adverse possession requires possession that is actual, open and notorious, exclusive, hostile (under a claim of right, without permission), and continuous for the…
Here, building and living in a cabin and tending a garden on the half acre was actual, open, exclusive, and hostile use; the man’s 7 years, the sister’s 1 year, and the…
Therefore, Section 1: the buyer acquired title by adverse possession to the half acre only, not the full three-acre tract. Title limited to the used…
Under the sea
A developer acquired a 30-acre tract of land zoned for residential use. The developer thereafter marked out 60 building lots. The developer granted various utility providers appropriate easements to install underground sewer and utility…
← A recorded easement is an encumbrance on the title.Whether the developer breached any present title covenant with respect to the recorded utility easements. Start with the six covenants.
G/R: a general warranty deed carries six covenants, three present (seisin, right to convey, and against encumbrances) and three future. The covenant against encumbrances…
Here, the recorded utility easements burden the lot and are encumbrances, and the deed listed no exceptions; the contract’s exception for easements of record merged into…
Therefore, Section 1: the developer breached the present covenant against encumbrances. Breach established.
Under the sea
Two years ago, a builder constructed a house for a woman and conveyed that house to her for $300,000 at the closing by a warranty deed, which was promptly recorded. The sale contract contained no express warranties relating to the…
← The implied warranty of quality runs to the buyer; the man lacks privityWhether the man can recover the $80,000 repair cost from the builder. The builder claim.
G/R: most jurisdictions imply a warranty of quality in a builder-vendor’s sale of a new home, covering significant latent defects from poor workmanship discovered within…
Here, the man bought from the woman, not the builder, so he lacks privity with the builder; whether the warranty reaches a subsequent purchaser and whether economic loss…
Therefore, Section 1: the man is unlikely to prevail against the builder for the $80,000. Builder claim likely fails. Section 2: Personal Liability…
Agency & Partnership 5
Under the sea
Linda owned and operated a clothing store as a sole proprietorship. To increase sales, she decided to offer a same-day delivery service to local customers. Rather than hiring an employee to make deliveries, she decided to use a driver who…
← private actual-authority limit (unknown to third parties)Whether Linda is bound to the sign contract despite telling the driver not to spend over $300. Is the principal bound by the over-limit purchase?
An agent has actual authority when he reasonably believes, from the principal's manifestations to him, that the principal wants him to act. An agent has apparent…
Here, the driver lacked actual authority because Linda capped the spend at $300. But the business card naming him her agent to buy signs was a manifestation traceable to…
Therefore, Linda is liable to the sign shop on the contract. Yes: bound by apparent authority.
Under the sea
Portable Shredder Services (PSS) is a partnership that operates a mobile shredding business. When a client needs paper shredded, PSS sends a truck and a crew to perform the operation. Adam, Beth, and Chris are partners in PSS. Each of them…
← no definite term or undertaking = partnership AT WILL; the notice termWhether PSS is a partnership at will or one for a definite term or particular undertaking. classification drives everything
G/R: A partnership is at will unless the partners have agreed to remain partners for a definite term or until a particular undertaking is completed. A provision that…
Here, the agreement fixes no end date and no particular undertaking; it only requires notice before withdrawing. PSS is therefore a partnership at will. This matters…
Therefore, PSS is at will, and any partner's withdrawal will dissolve it. key premise for Q1 and Q2
Under the sea
Five years ago, three radiologists—Carol, Jean, and Pat—opened a radiology practice together. They agreed to call their business “Radiology Services,” to split the profits equally, and to run the practice together in a manner that would be…
← profit-sharing + co-management + no term = at-will general partnershipWhether Radiology Services is a general partnership or an LLC. Which entity did they actually form?
A general partnership is the default entity when two or more persons carry on a business for profit as co-owners, sharing profits and management; with no definite term…
Here, the radiologists shared profits equally and comanaged the practice with no set term, which is a general partnership at will. Although they intended an LLC, they…
Therefore, Radiology Services is an at-will general partnership. At-will general partnership.
Under the sea
A man and a woman validly formed a partnership ("Garden Partnership") to fix commercial gardening equipment. Several months after Garden Partnership began operations, it hired an employee who was a skilled mechanic. The employee…
← employee's tort in the course of business = the partnership's (entity)Whether Garden LLP is liable for the judgment entered against Garden Partnership. Question 1.
G/R: A partnership is an entity distinct from its partners, and it is liable for torts a partner or employee commits in the ordinary course of business. Qualifying as an…
Here, the employee's negligent repair occurred in the ordinary course of the repair business, so the judgment was the partnership entity's obligation. Filing the…
Therefore, Garden LLP is liable for the $500,000 judgment. answer to Question 1
Under the sea
Over 5,000 individuals in the United States operate hot-air balloon businesses. A hot-air balloon has four key components: the balloon that holds the heated air, the basket that houses the riders, the propane burner that heats the air in…
← the notice to basket/burner makers is a manifestation that can createWhether the owner or the agent is liable on the aluminumbasket contract. Transaction 1.
G/R: An agent binds a principal only when acting with actual or apparent authority. Actual authority comes from the principal's manifestations to the agent; apparent…
Here, the owner authorized only wicker baskets, so the agent had no actual authority to buy aluminum. There was no apparent authority either: the owner made no…
Therefore, the owner is not liable and the agent is liable on the basket contract. answer to Transaction 1 Issue 2: The Burners (Unidentified…