Vikas Jagwani

Business Law
11/1/2014
Dr. Prewitt
Chapter 18
1. Ibberson Co., the general contract is declared by AgGrow Oils, LLC to design and build an oilseed
processing plant, contracted with subcontractor Anderson International Corp. to supply critical seed
equipment for the project. Anderson's formal proposal to Ibberson identified the AgGrow Oils Project,
and the proposal included drawings of the planned AgGrow plant. Under state law, this contract made
between the contractor and subcontractor for the express benefit of the third-party Agrow Oils could be
enforced by the intended third-party beneficiary Agrow Oils. The project was a failure. AgGrow was
successful in the lawsuit against Anderson under the Anderson-Ibberson contract, having the standing to
sue as an intended third-party beneficiary of that contract.
3. Lee is not required to so, as Sally was the one who went in contract with Lee. Even though she
transfers he rights. Sally is required to tell Lee about the situation, then it depends on Lee if he would
carry on with the contract or not.
5. Yes, these objections are valid, as the contract was between Jessie and Thomas. Since 30 days were
not up, Douglas did not have the right to sue Jessie, but if they were up, Thomas will have the right to
sue, as the contract now has been passed on to Douglas.
CPA questions
1. C
2. C
3. A
Chapter 20
CPA Questions
1. A
2. B
3. A
Chapter 19

1. Yes, McMullen can be discharged from the contract to build the apartment house, because it was led
by an external cause. It was an unexpected occurrence of an intervening act. As a result of a number of
serious apartment houses fire broke out in the city, and the city council adopted an ordinance increasing
the fire precautions that had to be taken in the construction of a new building.
3. Even though all creditors have not been paid in full, a discharge in bankruptcy eliminates ordinary
contract claims against the debtor. As part of the transaction, Fast Foods agreed to pay the debt owed
to American Bank, and the parties agreed to a new schedule of payments to be made by Fast Foods.
5. Unless a contract so provides, time is ordinarily not of the essence, and performance within a
reasonable time is sufficient. In the sale of a property, time is not regarded as of the essence when there
has not been any appreciable change in the market value or condition of the property. In this case,
Creasy should not get an extension, as he was told that the sales transaction was to completed by 90
days.

CPA Questions
1. B
2. B
3. C