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Week 3 – Discussion 2: Contracts


Introduction to Business Law (5th ed.) – see attachments

Chapter 10, “Forming a Contract”

Chapter 11, “Requirements for a Contract”

Chapter 12, “Performance of a Contract”

Chapter 13, “Practical Contracts”


Chapters 10 -13 discuss forming, executing, and performing duties in a contract. Remedies for breach of contract and the duty to mitigate damages in the event of breach are also covered.


Chapter 12 also explores special circumstances that give rise to contractual obligations, such as quantum meruit. Chapter 13 concludes this unit with an examination of lawyer-client contracts.


In this Discussion, you will explore risks to businesses associated with contractual and agency relationships.


The following Learning Materials will help you with Discussion 2.


Post a 250-300 word response to the following Discussion prompt. Ensure that your response answers all parts of the question and is supported by both in-text citations and a reference list.

The McAllisters had several serious problems with their house, including leaks in the ceiling, a buckling wall, and dampness throughout. They repaired the buckling wall by installing I-beams to support it. They never resolved the leaks and the dampness.

When they decided to sell the house, they said nothing to prospective buyers about the problems. They stated that the I-beam had been added for reinforcement. The Silvas bought the house for $60,000. Soon afterwards, they began to have problems with leaks, mildew, and dampness.

Did the McAllisters make an intentional misrepresentation of fact by telling the Silvas the I-beam was for reinforcement? Did the McAllisters make a material misstatement when they told the Silvas that the I-beam was for reinforcement without mentioning the fact that the wall was buckling? Are the Silvas entitled to any money damages? Why or why not?



1.  There’s no need to reiterate the facts or cut and paste the question. Don’t waste your valuable space and word count.


2.  Stay on course. Focus on what the question is asking. Remember to stay on focus. You will certainly have your opinion on the correct conclusion to the case but the application of law usually does not involve politics, opinion, or social policy arguments – especially when its supposed to be 250-300 words.


3. Be careful with your citations and sources. I don’t care about the format of the citations, but I do very much care about the sources you use. Please do not use Wikipedia, blogs (especially those written by attorneys or advocacy groups), or popular press. Of course you can refer to those to get a better understanding of the case, but they will not help you, and maybe even hurt you when understanding the law.  Please also use specific page references in both your initial post and in your responses to your classmates’ posts.


4. Finally, don’t feel that the burden of the world is on your shoulders with these discussion posts. I am not asking you to uncover every legal issue in the original cases.


5. As a general rule, the call of the question has all of the facts that you need to be able to mechanically apply the rule. This is not a case brief exercise. It is an analytical exercise where I am giving you facts and asking you to apply the rule learned this week to come out with a reasoned conclusion. In fact, there is no right or wrong answer, just a right or wrong way of answering the question.



WK 4 – Business Law (Legal Implications in Executive Decision Making) was first posted on January 16, 2020 at 4:19 am.
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