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1. Carl Contractor who is licensed in Maryland but not the District of Columbia enters into a contract with a D.C. resident, Babsey Rich to finish her basement. After the work is completed and approved by Babsey, she finds out Carl is not licensed in D.C. Does Babsey have to pay Carl? Explain your answer. 2. I agree to pay Sally $75.00 for her bicycle. There is no writing. Later I change my mind and refuse to go forward with the deal. Can Sally sue me and win? 3. Paul the Painter agrees to paint Harry the Homeowners house for $5000.00. The contract stated that the front door was required to be painted red. All the work was performed correctly except Paul painted the front door green. Is Harry required to pay Paul? If yes, how much? 4. Larry the Landlord rented an apartment to Terry the Tenant for 1 year. The term of the lease is from January to December. Terry breaks the lease and moves out in May. Does Larry have an obligation to re-rent the premises in May? 5. Lonnie and Jim buy a townhouse, fix it up and then sell it and spilt the profits. Afterwards they go their separate ways. What type of business organization is this? Would it make a difference if they took the profits and purchased another townhouse? 6 Manny Moe and Jack are partners. Manny, without the other partners permission, purchases a $50,000.00 truck. Can Moe and Jack void the sale? If not what is their recourse against Manny? 7. Sammy Slime forms a corporation but does not follow any of the corporation formalities. He incurs $50,000.00 in debt and the corporation does not have any assets. What can the creditors do to collect the debts? 8. Donald Trump is on the board of directors of Mega Corp. He makes a decision to purchase the Old Post Office in Washington, D.C. He invests $500 million in renovations and it turns out to be a huge flop. Can the shareholders sue Donald Trump for his decision?
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