Question

Sam Sleaze and his wife, Suzy Sleaze incorporated 2 companies. They are the sole shareholders, directors and officers of both.

1. Sleaze and Sleaze Resort Inc. (“S & S”) purchased an acreage with 10 cabins on it – all the cabins were in very poor condition. S & S hired Chris to renovate all of the cabins which S & S are intending to rent as vacation rentals.

2. Sleaze Two (“S2”) holds all monies to be invested in the resort. When Chris sends in an invoice S2 transfers money into the bank account of S & S.

Chris completed the renovations with a high quality service but was still owed one-half of the contract price when the cabins burnt down and S & S had no fire insurance on the land or the buildings. S & S refused to pay the balance and Sam and Suzy tell him that S & S has no money to pay him.

1. Who will Chris sue? (1 mark)

2. What is the legal issue? (1 mark)

3. What is the Rule of Law that applies? (1 mark)

4. What will be the outcome and why? (2 marks)

Answer 1

Answers-

Ans1) - Chris will sue the organization S and S on the grounds that the agreement was among Chris and them and not S2.

Ans 2) - The legal issue here is break of agreement.

The organization S and S should pay the sum for remodel work done on lodges to Chris however would not pay.

Ans3) The standard of law which applies to this circumstance is when there is break of agreement,

the harms borne by the gathering should be repaid by the other party penetrating the agreement.

Ans4) The organization S and S should pay the equalization to Chris as they penetrated the agreement. Also, they should pay an extra pay for the penetrate of agreement if the agreement expressed any such thing.

This is on the grounds that an agreement is a legal understanding which is enforceable by law that administers and perceives obligations and privileges of the gatherings in question.

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