Grow Essay

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Chapter 7 Case Problems 1. A nephew was promised by his uncle that if he refrained from using tobacco & alcohol while at college that he would pay him $10,000. The nephew was able to refrain from using either while at college and asked his uncle for the money. The uncle agreed to keep good on his promise and pay the nephew the money, but died before he could pay the nephew the money. The nephew decided to make a claim against his uncle’s estate, but the estate administrator refused to pay, arguing that the uncle’s promise was not supported by consideration. Clearly, this is a futile case and the nephew doesn’t stand a chance to collect on the money. The nephew and uncle had a verbal agreement, but it was hardly a legally binding contract. Even if the uncle had not passed away and elected to not give the nephew the money, there is nothing the nephew could do. Unless contracts are in writing and legally binding, verbal agreements will rarely hold up in court of law. 2. Osborne entered into an agreement with a corporation where he once served as the former chairman, that after retirement, he would be available to work as a consultant and would not work for any competitors of the corporation. In light of the agreement, the corporation paid Osborne $15,000 per year for the rest of his life. The corporations paid Osborne as they agreed to for a period of two years and then stopped paying him. Osborne sued and the corporation argued that there was no consideration because the contract was based on past services. In this case, I believe Osborne should win his case, provided that the contract was legitimate and written according to their agreement. If the contract explicitly stated Osborne would receive $15,000 a year for life than the contract would be enforceable and in-tact until Osborne died. In this case, I believe Osborne should

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