business law 268

11. The house in which X resided was located on a busy street. From time to time, vandals had broken

into his garage and stolen tools and equipment he had stored there. One evening, just at dusk, he saw someone enter his garage. He quickly rushed out to the garage, closed the door, locked it, then called the police, When the police arrived, X discovered that he had locked the municipal building inspector in the garage. Discuss the legal position of X and the building inspector.

12. Hillary and Derrick are purchasing a house and property for the first time in a small town. They are

excited about this big purchase. They do an online search for a lawyer who will handle the purchase. They find Simpson, a property law lawyer, and make an appointment with him. They provide Simpson with their documentation and he promises that he will have everything taken care of. There were several issues that became important during the process, such as which appliances were part of the sale and a boundary line that was not clear. The property closed nevertheless and it wasn’t until after the sale when Hillary and Derrick had a boundary line dispute with the neighbours that they realized Simpson had also represented the sellers. What can Hillary and Derrick do?

13. A backhoe owned by Digger Ltd. was involved in the trenching for a water pipeline located along a city

sidewalk. In moving a bucketful of rock into a waiting truck, the backhoe operator accidentally struck and cut an overhead power line. The cut power line fell to the sidewalk, injuring and electrocuting a pedestrian who had been observing the trenching. The pedestrian required extensive hospitalization and reconstructive surgery, and later commenced legal proceedings against Digger for the injuries suffered, including six month’s lost wages while hospitalized.

Outline the various steps the parties to the action would take to bring the case to trial.

14. A lawyer negligently prepared a deed of land for a client who was selling his property, and in doing so

described the wrong parcel of land in the deed. The lawyer acting for the purchaser failed to notice the error, and registered the deed. The purchaser of the land later discovered that her deed was for the wrong parcel of land.

Discuss the responsibility of the lawyers.

15. The president of A Co. wrote a letter to B Co, offering to sell B Co. a large quantity of steel at a

specific price. B Co. did not respond to the letter, but A Co. sent a “sample load” of one tonne that B Co, used in its manufacturing process. A month later, A Co. sent the quantity of steel specified in its letter along with an invoice at the price specified.

Is B Co. bound to accept and pay for the steel? Advise the parties.

16. A and B agree to carry on a business in partnership as hardware merchants. A and B agree that if

either party wishes to end the partnership he must not carry on a similar business within 80 kilometres for a period of ten years. A leaves the business a year later and sets up a competing hardware business across the street from their old shop, which B continues to operate. Advise B and A.

17. X, aged 17, purchased a bicycle on credit for the purpose of transportation to and from her place of

employment. She made no payments on the bicycle, and the seller brought an action against her for the debt.

Discuss the issues raised in this case and render a decision.

18. An industrial bakery agrees to supply one hundred thousand loaves of bread monthly to a major

Canadian grocery chain at a price of $1.00 per loaf. Before deliveries begin, the baker rethinks the deal, feeling it should have charged more. On review, it discovers that the contract recites “one hundred” loaves of bread monthly at $1.00 per loaf.

What recourse will the grocery chain have if the bakery refuses to honour its price beyond 100 loaves?

19. Eric, at age 80, owns a large property of about 100 forested acres, half of which is covered with

walnut and butternut trees he had planted as a boy. Eric is approached by a real-estate agent who tells him he has a client who is looking for land with trees where a new house can be built. Eric severs the treed half of his property and sells it, and the new owner builds a family home. In talking with his new neighbour, Eric discovers to his horror that the buyer is the owner of a custom sawmill, and intends to cut down all of the hardwood trees for furniture and veneer,

Does Eric have any recourse?

20. Kane, a landlord, rents an office to Lawrence on a five-year lease. After a year and a half, Lawrence

tells Kane he has bought another business and will be moving his operation there. He offers to pay Kane rent to the end of the year, but to leave the premises immediately so that Kane can rent them to someone else. Kane refuses and says that if Lawrence leaves he will sue him for the rent owing until the end of the fiveyear lease. Lawrence leaves, and when the five years is over Kane sues him.

a. What type of breach has Lawrence committed?

b. What type of remedy is Kane entitled to? Is there anything that could have been done when the

contract was made that would have helped prevent this situation?

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