Harvard University Monetary Benefits of the Acme Contractors Questions

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Zneiry

Business Finance

Harvard University

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Acme Contractors entered into a contract to build a hotel for Hamilton Hotels. The construction was to begin on November 1, 2020. Due to abnormal sub-zero temperatures and a blizzard, Acme was unable to begin work until March 1, 2021, and was 4 months late in finishing the project. Hamilton sued Acme for breach of contract by failing to perform on schedule. (a) Will Hamilton be successful? (b) Why or why not? Explain. Kara operates Frosted Bakery. She decides to sell the business so she can spend more time at home. She sells the Bakery and all the recipes to Henry and the agreement includes a clause stating that Kara will not operate a bakery within a 5-mile radius of Frosted for a five-year period. Henry continues operating under the name Frosted Bakery for 6 months. During the 6 months that Kara is home she realizes she’s bored and misses the bakery business. Kara decides to open a new bakery, Sprinkles, across the street from Henry. Henry sues Kara for breach of contract. (a) Will Henry be successful? (b) Why or why not? Explain. SAGE was a successful singing group that contracted to perform at the “Indie Festival” rock concert. SAGE was aware that the promoter would sustain a substantial loss if the group failed to perform. The members of the group were stricken with the flu and had to be hospitalized. All the members were still in the hospital on the day of the concert. The promoter sued SAGE for breach of contract. (a) Will the promoter be successful? (b) Why or why not? Explain. Pests Be Gone has a contract with Paper Enterprises to provide pest control services on a monthly basis. Karen works at Paper Enterprises and she is bit by a spider. Karen sues Pest Be Gone claiming she is a third-party beneficiary to the contract between Pest Be Gone and Paper Enterprises. (a) Is Karen a third-party beneficiary? (b) If so, what type of third-party beneficiary would Karen be? (c) Can Karen recover under the contract?
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Business Law Exam
Question 1
Despite Hamilton being in a contract with Acme Contractors over the construction of a hotel,
Hamilton will not be successful in suing and getting damages from Acme Contractors for breaching
the contract and failing to perform on schedule. The reason is that the case fails under impossibility
of performing the contract. In this case, Acme Contractors, who are the defendant, have provided
reasons that are causing impossibility to perform. Such reasons are outside their control; hence they
should be excused from failing to perform at the agreed time. Since Acme Contractors cited
abnormal sub-zero temperatures and a blizzard as hindrances, then it means that performing under
such conditions could expose them to unreasonable and extreme difficulty, loss, injuries or expenses
which are not catered by the contract.
Question 2
Henry will be successful in his lawsuit. The agreement between Kara and Henry contain...

pnenyvgb (15471)
New York University

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