DIRECTIONS Assume you are a managing Legal Assistant in the

DIRECTIONS: Assume you are a managing Legal Assistant in the law firm of Bond, Bond, and James, Attorneys-at-Law. The firm represents Long John Ranger Restaurants which is under a contract with AVOCO Construction Company to build a new restaurant. The senior partner, Avery Bond, has circulated the office memorandum which appears below. Respond to Mr. Bond on each of the FIVE questions presented in the memo. Be sure to give supporting legal principles for your responses

CONTRACT DISPUTE ASSIGNMENT

Standards:       Your answers should include detailed, thorough discussions.
______________________________________________________________________                    

Use the following set of facts to prepare a memorandum.


OFFICE MEMO

TO:          Legal Staff

FROM:      Avery Bond, Senior Partner
                Bond, Bond, and James, Esqs.

RE:           Recommendations on a Contractual Dispute
                Client File:     #07-2016
                Client Name: Long John Ranger Restaurants

DATE:       January 16, 2016

On October 1, 2015, Long John Ranger Restaurants entered into a binding contract with AVOCO Construction Company to build a new restaurant facility. There may be some problems with enforcement of that contract as listed below.

1.    Long John Ranger did not realize that AVOCO was under federal indictment for tax evasion. Can Long John get out of the contract because of this?

2.    AVOCO forgot to indicate in the contract that their work would take 120 days to complete. Can Long John successfully sue if they expected the work to be completed in 90 days?

3.    Long John now believes that AVOCO is not going to perform the required tasks. What remedies does Long John have if this is the case?

4.    Long John has been informed that the construction cannot begin because AVOCO has no bricks. In fact, a nationwide brick strike has made the acquisition of bricks very difficult. Can Long John successfully sue AVOCO?

5.    Assume that Long John Ranger does build a new restaurant and sells it to Bobby Ray for $500,000.00. As part of the transaction, Long John agrees not to open another restaurant for ten years within a 50-mile radius of the one sold. Seven years later, Long John opens a restaurant 30 miles away. Can Ray enforce the agreement? Why or why not?

Solution

1. no, they can not come out from the contrcat with only this reason.

2. no, no one mentioned the time duration before entering into the agreement. now if the parties assumes different dates, it is not possible to come out from the contranct

3. if the AVOCO is not going to perform the promised tasks, legally they are bounded and sued. but the tasks should be mentioned in the agreement, otherwise they are not bounded legally.

4. no, it is not in the hands of AVOCO or Long John. but AVOCO has to fulfill the agreement with in the time period only. they need to search for alternatives.

5. if they opened with their own name, then they are legally enforcable with the agreement.