Sales and Lease Contracts
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Hello attached is the work i have created. I need to see if number 4 sounds correct and need help in solving number 6. Thank you.
4. Appropriate management response to the situation to limit legal liability.
6. Preventative measures that management can take to limit liability in the future. Explain the action that management can take to apply the liability limiting rules to the situation.
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4. Appropriate management response to the situation to limit legal liability.
Management should order the furniture and decoration when Disney has laid the foundations for the hotel. This way management will be guaranteed that the hotel was being built instead of ordering the products before the construction. In addition, Disney's management should never make a deal over the phone or orally with a merchant. They should meet with the merchant face to face and create a contract with a cancellation policy written in the contract.
True this is a measure that the management can take in future to avoid losses, however, the issue is what Disney can do now to limit the losses that may occur?
· Mutual or unilateral mistake as to a basic assumption upon which the contract was made. There was no mistake so Disney cannot claim relief by claiming that there was a mistake.
· Misrepresentation of facts inducing one of the parties to enter the contract. There was no misrepresentation of facts, the changes have come in because of Disney's change in plans.
· Duress inducing one of the parties to enter the contract. No, Disney cannot claim any relief that the contract was made under duress.
· Lack of capacity to contract (such as infancy, influence of drugs, alcohol or mental illness). Both the parties had the capacity to enter the contract.
· Performance of the contract becomes impossible or extremely difficult or costly by virtue of events occurring after the contract is formed. It is possible for both the parties to form a contract and so this cannot be taken to be a plea, Disney has by its own decision decided not to ...
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