Question

QUESTION 1:

Write short notes on all of the following:

1.     Personal Insurance

2.     Real Property

3.     Lease Contract

4.     Partnerships

5.     Employee contracts

QUESTION 2:

Berger checked into a motel and left a valuable stamp collection in his room because the motel did not provide safe-deposit boxes. The stamps were stolen. Was the motel liable for the value of the collection? Explain your answer.

QUESTION 3:

Explain the difference between a secret partner and a silent partner. List and briefly explain five different types of partners.

QUESTION 4:

Fox, who was going into the army, contracted with Scutti Auto Sales to sell his car for a commission. Scutti Auto Sales advanced $500 to Fox, with the understanding that the advance would be paid back out of the proceeds of the sale. Three weeks later, before the car was sold, Fox changed his mind and tried to terminate the agency. Was Fox legally able to terminate the agency?

Answer 1

1. Personal Insurance - It is the insurance purchased for personal or for family. This insurance is used to cover the risk of death, injury, or any other incidental expenses. eg Life insurance

2. Real Property - Real property is defined as any land or building attached directly to the land. It consists of natural resources, building, machinery, canals etc.

3. Lease contract - Lease contract is a contract signed between two parties, one which want to rent out it (lessor) and the one which want to rent it (lease). Lease contract contains the terms and conditions of use , mode of payments etc.

4. Partnerships - Partnership is an agreement between two and more parties to operate the business. The parties are called as business partners. There are three types of partnerships - General Partnership, Limited Partnership, Limited Liability Partnership   

5. Employee Contract - Employee contract is a written document between the employer and employee. This document is created when the employee joins the company. It contains terms and conditions of employment, roles and responsibilities of employer an employee.