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Question
Claus tells CPA Vernon that he needs an audit to borrow money from Big Bank. Claus pays Vernon and Claus takes Vernon's audit to Big Bank who makes the loan. When Claus defaults on the loan, Big discovers numerous liabilities that the audit did not reveal. Can Big Bank sue Vernon for negligence?
A. Yes, because Vernon breached the trust that Claus had placed in him.
B. No, because Big and Vernon did not have a contract.
C. Yes, because Big was an actually named third party.
D. No, because Vernon does not guarantee the collection of Big's loans.
Answer
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Related questions
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B. Writ of replevin
C. Specific performance
D. Cover the sale
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Turban, an immigrant who speaks little English, enters into a contract to pay $300 per month for ten years to purchase an auto from Travel Motor Co. The appraised retail value of the car is $5000. What legal remedy would release Turban from his contract?
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Q:
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A. It governs only the formation of a sales contract and the rights and duties that arise from it.
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Q:
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A. Oral contracts can occur between merchants and consumers for sale of good of $500 or more.
B. A written conformation is received and signed by one party, and sent to the other for approval.
C. A written conformation is received by a party and to which it does not object to within 10 days.
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In a contract for which no delivery is required, title to the goods does not pass to the buyer until the buyer receives the goods.
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In a shipment contract, risk of loss does not pass from the seller to the buyer until the buyer receives the goods.
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In an auction with reserve, the auctioneer must accept the highest bid.
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A sale of goods contract offer is silent concerning the method of acceptance. It may be accepted in any reasonable manner.
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C. nominal damages.
D. speculative damages.
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A. a constructive breach of contract.
B. substantial performance.
C. abandonment of contractual obligations.
D. a repudiation of contract.