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Business Law Essay

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Chapter End Questions Chapter 12-12.1, 12.3 Chapter 13-13.4, 13.5, 13.7 Chapter 14-14.3, 14.5 Chapter 15-15.2, 15.3, 15.4 12.1 Jerome is an elderly man who lives with his nephew, Philip. Jerome is totally dependent on Philip’s support. Philip tells Jerome that unless Jerome transfers a tract of land he owns to Philip for a price 30 percent below market value, Philip will no longer support and take care of him. Jerome enters into the contract. Discuss fully whether Jerome can set aside this contract. Yes, I believe Jerome can set aside the contract because it was formed under undue influence and duress. Since Jerome is totally dependent on Philip for his support and the contract benefits the guardian by being able to purchase the land …show more content…

13.7 Carlin Krieg owned a dairy farm in St. Joe, Indiana, that was appraised at $154,000 in December 1997. In August 1999, Krieg told Donald Hieber that he intended to sell the farm for $106,000. Hieber offered to buy it. Krieg also told Hieber that he wanted to retain a “right of residency” for life in the farm. In October, Krieg and Hieber executed a “Purchase Agreement” that provided that Krieg “shall transfer full and complete possession” of the farm “subject to [his] right of residency.” The agreement also contained an integration clause that stated “there are no conditions, representations, warranties, or agreements not stated in this instrument.” In November 2000, the house was burned in a fire, rendering it unlivable. Hieber filed an insurance claim for the damage and received the proceeds, but he did not fix the house. Krieg filed a suit in an Indiana state court against Hieber, alleging breach of contract. Is there any basis on which the court can consider evidence regarding the parties’ negotiations prior to their agreement for the sale of the farm? Explain. [Krieg v. Hieber, 802 N.E.2d 938 (Ind.App. 2004)] Yes, because the contract did not represent the complete and final statements of the parties’ agreement. Since there is a “right of residency”, additional testimony and evidence needs to be shown to the court by way of the Parol Evidence Rule. Since Krieg resides at the farm, and it is possibly

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