Solved: 1 A restaurant Pizza of Gaithersburg Inc PG agreed

with

1. A restaurant, Pizza of Gaithersburg, Inc. (PG), agreed with Virginia Coffee Service (VCS) to
have vending machines installed in PG’s restaurants. The contract was to run for one year and
was automatically renewable unless PG gave 30 days’ notice. One year later, VCS was sold to
Macke Company, including the contract with PG. PG canceled the contract because of the
change of ownership. Macke sued PG, claiming that VCS had delegated the duties to Macke
and it was performing the duties previously done by VCS. PG claimed that the contract it had
with VCS was a personal- service contract and was therefore not assignable. Does Macke
Company have a valid argument?

2. The employees of Powder Power Tools Corp. were represented by a labor union that had
negotiated an agreement covering pay rates. A number of employees did not receive the higher
rates of pay specified in the union contract. Springer, an employee, brought suit on behalf of
those employees who did not receive the higher pay, claiming that they were third- party
beneficiaries of the contract. The employer claimed that Springer could not sue because he was
not a party to the contract. Is it likely that Springer will be successful in his suit?

3. Birmingham Automotive Supply Company entered into a contract with the Excel Construction
Company to build a chain- link fence around the property of the auto supply company. Included
in the contract was a provision that the fence must be manufactured by Tornado Fence
Company. Excel used another brand of fence, and Tornado sued Excel for the loss suffered,
claiming that it was a third- party beneficiary to the contract. Will Tornado be successful in its
claim of loss suffered?

4. Weintraub wished to donate a music rehearsal room to Northern College, from which she had
graduated. She hired Hazelton, an architect who specialized in acoustics, to design the room.
Shortly after the agreement was made, Weintraub died. Hazelton refused to begin work,
claiming that his contract was made with Weintraub. Can the college compel Hazelton to
complete the work he agreed to do for Weintraub?

ANSWER
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