Reference no: EM131686978

Sandy orally agreed to sell Rolf her house for $400,000.00. Rolf gave Sandy a check for $10,000.00 as deposit on the house. They agreed to complete the sale on a specific day in 3 weeks when Rolf would pay Sandy the remaining $390,000.00 and Sandy would give the deed for the house to Rolf.

2 weeks later Sandy went to Rolf's home, returned his $10,000.00 check, and told Rolf she had changed her mind about selling her house.
Rolf believes they had a binding sales contract and that Sandy must sell him the house because he gave Sandy a deposit for the purchase of the house. Sandy believes she and Rolf did not have a binding contract.

What would you conclude about the agreement between Sandy and Rolf?

A. Sandy and Rolf had a binding contract; both agreed to the sale and oral contracts can be enforceable.
B. Sandy and Rolf had a binding contract because Rolf gave consideration for the contract by giving Sandy the $10,000.00 deposit.
C. Sandy and Rolf did not have a binding contract as the contract had not been fully performed.
D. Sandy and Rolf did not have a binding contract; the contract needed to be written to be enforceable under the circumstances.

Edgar, an independent contractor, was hired by ABC Enterprises, Inc. (ABC) as a consultant to assist ABC in implementing a new IT system.

Edgar agreed to provide consulting advice to ABC 10 hours per week for 6 weeks. In exchange, ABC agreed to pay Edgar $2500 per week, payable in a lump sum of $15,000 at the end of 6 weeks. Edgar and ABC had a valid written contract including these terms.

After 4 weeks of consulting, Edgar told ABC he needed an additional $500 per week for the remaining 2 weeks to cover expenses. Edgar said ABC needed to pay him a total of $16,000 for the 6 weeks of consulting. ABC orally agreed to amend the contract and pay the additional money.

At the end of 6 weeks, ABC was very satisfied with Edgar's consulting work. ABC gave Edgar a check for $15,000 for the consulting but refused to pay the additional $1000 Edgar had requested.

Edgar claims he and ABC had a valid contract to pay him an extra $1000, for a total of $16,000.

What is true about the modified agreement, and the amount owed to Edgar?

A. The modified agreement is enforceable because both parties gave legal consideration for the new contract terms: ABC agreed to pay an extra $1000, Edgar agreed to continue to consult for ABC.
B. The modified agreement is enforceable because, under the UCC rules, all contract modifications are valid if the parties consent.
C. The modified agreement is unenforceable; ABC and Edgar agreed orally to the extra $1000, but there was no written contract covering the new contract terms.
D. The modified agreement is unenforceable because both parties did not give new consideration for the contract modification contract.

Accounting Temps, Inc. (Temps) has 50 employees who work in offices on two floors of Temps' business office building. There are no elevators in the building. Taylor, a Temps employee for three years, has an office on the second floor. Following a fall, Taylor has a permanent leg injury and difficulty walking up and down stairs. Taylor requested to be moved to a first floor office, but Temps stated there is no space available on the first floor and that it would be unfair to move someone else from a first floor office because all employees on the first floor have seniority over Taylor. Temps promised to move Taylor when a first floor office becomes available. In the meantime, Temps offered to have another employee help Taylor up and down the stairs to the second floor daily.

Is Temps handling the situation properly?

A. Yes, Temps is required to make reasonable accommodation for Taylor, and has done so by promising to move Taylor to a first floor office as soon as possible, and by offering to help Taylor on the stairs daily.
B. Yes, Temps is required to make "reasonable accommodation" for Taylor, but not at the inconvenience of other employees who might have to move offices.
C. No, Temps should immediately move Taylor to a first floor office or find temporary first floor office space until permanent office space is available on the first floor.
D. No, Temps should install an elevator to the second floor if first floor office space is available.