09 Nov Contract Dispute
See the scenario below and share your thoughts on whether Chuck will be successful or not? Consider whether there is a duty to disclose and, if you answer all three questions substantively, I will award +20 EC on your Assignment 2 paper. You must explain the law as to contracts and be informative and demonstrate an understanding of the law and answer the questions using some source for credibility. No one word answers will be accepted.
- Employer – Widget’s Inc.
- Contract Dispute
- ISSUE: Duty to Disclose Information
Widget’s Inc. was looking for a new warehouse big enough to accommodate their new company provided day care center for employee’s kids. Widget’s CEO, Chuck, was searching for business properties in MLS in Michigan and came across a perfect space belonging to Lori Baggot, Attorney. Chuck did not know but the warehouse was widely reported to be haunted. Lori had even made the front page of the local paper when she reported the haunting to the local paper and the "In the News Legal Journal" last year.
During contracting for the warehouse, Lori failed to tell Chuck about the newspaper and the journal articles. The parties signed a contract for sale and the allowed three days for recission passed.
Chuck, excited for the new company, bought furniture for the day care center and even hired a manager to run the center. When Chuck learned of the stories and the haunting, on behalf of the company sued Lori for rescission and damages. Lori argued the suit was ridiculous because there was no such thing as ghosts and, she was planning an exorcism prior to the closing anyway.
- Is there a valid contract? Why or why not?
- Did Lori have a duty to disclose the haunting to Chuck and Widget’s Inc.?
- Will Chuck and the company prevail in his lawsuit, why or why not?
