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State the legal issue, legal rule, and analysis of three case studies

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Please answer each question below and state the following: legal issue, legal rule, analysis.

Q1. Paul Gett is a well-known, wealthy financial expert living in the city of Torris. Adam Wade, Gett's friend, tells Timothy Brown that he is Gett's agent for the purchase of rare coins. Wade even shows Brown a local newspaper clipping mentioning Gett's interest in coin collecting. Brown, knowing of Wade's friendship with Gett, contracts with Wade to sell a rare coin valued at $25,000 to Gett. Wade takes the coin and disappears with it. On the payment due date, Brown seeks to collect from Gett, claiming that Wade's agency made Gett liable. Gett does not deny that Wade was a friend, but he claims that Wade was never his agent. Discuss fully whether an agency was in existence at the time the contract for the rare coin was made.

Q2. Packer owned and operated a fruit cannery in Southton, Illinois. He stored a substantial amount of finished canned goods in a warehouse in East St. Louis, Illinois, owned and operated by Alden, in order to have goods readily available for the St. Louis market. On March 1, he had 10,000 cans of peaches and 5,000 cans of apples in storage with Alden. On the day named, he borrowed $5,000 from Alden, giving Alden his promissory note for this amount due June 1 together with a letter authorizing Alden, in the event the note was not paid at maturity, to sell any or all of his goods in storage, pay the indebtedness, and account to him for any surplus. Packer died on June 2 without having paid the note. On June 8, Alden told Taylor, a wholesale food distributor, that he had for sale as agent of the owner 10,000 cans of peaches and 5,000 cans of apples. Taylor said he would take the peaches and would decide later about the apples. A contract for the sale of 10,000 cans of peaches for $6,000 was thereupon signed "Alden, agent for Packer, seller; Taylor, buyer." Both Alden and Taylor knew of the death of Packer. Delivery of the peaches and payment were made on June 10. On June 11, Alden and Taylor signed a similar contract covering the 5,000 cans of apples, delivery and payment to be made June 30. On June 23, Packer's executor, having learned of these contracts, wrote Alden and Taylor stating that Alden had no authority to make the contracts, demanding that Taylor return the peaches, and directing Alden not to deliver the apples. Discuss the correctness of the contentions of Packer's executor.

Q3. Mary is the owner of a retail fish marketing business. Her managing agent borrowed $3,500 from Stephen on Mary's behalf, for use in Mary's business. Mary paid $200 on the alleged loan and on several other occasions told Stephen that the full balance owed would eventually be paid. Mary then disclaimed liability on the debt, asserting that she had not authorized her agent to enter into the loan agreement. Stephen brought this action to collect on the loan. Decision?

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Opinions only:

1. There is no agency. Friendship is not agency. Showing a newspaper clipping is not agency. There was no proven relationship that would require Gett to pay for the coin because he did not authorize nor agree to make payment. There was no existing contract with Gett's ...

Solution Summary

The expert states the legal issues, legal rules and analysis of three case studies.

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