Assignment CaseProblems
Assignment
Chapter 15- Contracts in Writing
Sangamithra Gopikrishnan
Business Law
July 16 2014
1. Green was the owner of a large department store. On Wednesday, January 26, he talked to
Smith and said, ‘‘I will hire you to act as sales manager in my store for one year at a salary of $28,000. You are to begin work next
Monday.’’ Smith accepted and started work on Monday,January 31. At the end of three months,
Green discharged Smith. On May 15, Smith brought an action against Green to recover the unpaid portion of the $28,000 salary. Is Smith’s employment contract enforceable?
Solution : Smith’s employment contract is not enforceable and Green, the employer wins the case. The points to be noted in this case :
1. It was an oral contract
2. Contract happened on January 26th, Wednesday and Smith was asked to start work on January
31st, Monday.
According to One Year Provisions,
the terms of the contract should make it possible for performance to
occur within one year. Since Smith was asked to start work four days after the contract was formed, it is not possible to perform within one year. Also, Since the oral contract has to be completed in one year to be enforceable. In this case, since the contract cannot be completed in a year it is unenforceable. It would have made a difference if it was a written contract. but, the contract is within the statute of frauds and enforceable because its oral.
2.
Rowe was admitted to the hospital suffering from a critical illness. He was given emergency
treatment and later underwent surgery. On at least four occasions, Rowe’s two sons discussed with the hospital the payment for services to be rendered by the hospital. The first of these four conversations took place the day after Rowe was admitted. The sons informed the treating physician that their father had no financial means but that they themselves would pay for such services. During the other conversations, the sons authorized whatever treatment their father
needed,
Chapter 15- Contracts in Writing
Sangamithra Gopikrishnan
Business Law
July 16 2014
1. Green was the owner of a large department store. On Wednesday, January 26, he talked to
Smith and said, ‘‘I will hire you to act as sales manager in my store for one year at a salary of $28,000. You are to begin work next
Monday.’’ Smith accepted and started work on Monday,January 31. At the end of three months,
Green discharged Smith. On May 15, Smith brought an action against Green to recover the unpaid portion of the $28,000 salary. Is Smith’s employment contract enforceable?
Solution : Smith’s employment contract is not enforceable and Green, the employer wins the case. The points to be noted in this case :
1. It was an oral contract
2. Contract happened on January 26th, Wednesday and Smith was asked to start work on January
31st, Monday.
According to One Year Provisions,
the terms of the contract should make it possible for performance to
occur within one year. Since Smith was asked to start work four days after the contract was formed, it is not possible to perform within one year. Also, Since the oral contract has to be completed in one year to be enforceable. In this case, since the contract cannot be completed in a year it is unenforceable. It would have made a difference if it was a written contract. but, the contract is within the statute of frauds and enforceable because its oral.
2.
Rowe was admitted to the hospital suffering from a critical illness. He was given emergency
treatment and later underwent surgery. On at least four occasions, Rowe’s two sons discussed with the hospital the payment for services to be rendered by the hospital. The first of these four conversations took place the day after Rowe was admitted. The sons informed the treating physician that their father had no financial means but that they themselves would pay for such services. During the other conversations, the sons authorized whatever treatment their father
needed,