On May 17, 2000, David Holmes met with Clarence Burleson, a loan officer with the Bank of Milligan, to discuss borrowing $5,000 from the bank to start a new business. After learning that he did not qualify for the loan because of his weak financial condition, Holmes told Burleson that his former employers, the Clarks, would guarantee payment of the loan. Burleson called the Clarks who orally stated on the telephone that they would personally guarantee the loan to Holmes. Relying on this guaranty, the bank loaned Holmes the $5,000. The bank sent a written guarantee to the Clarks for their signatures, but it was never returned to the bank. When Holmes defaulted on the loan, the bank filed suit against the Clarks to recover on the guaranty contract. The bank’s pleadings contain two arguments: 1) an enforceable express contract existed between the bank and the Clarks; and in the alternative 2) a quasi (implied-in-law) contract should be imposed to prevent unjust enrichment.
Using the IRAC method, discuss whether there was a contract as the bank claims and whether the Clarks are liable.
Solved
Show answers
More tips
- D Dating, Love, Relationships How Long Can Love Last?...
- S Science and Technology How to Make a Homemade Smoker: The Ultimate Guide...
- S Society and Politics 10 Tips for Boosting Your Self-Esteem...
- C Computers and Internet How to Create a Folder on Your iPhone?...
- G Goods and services How to sew a ribbon: Tips for beginners...
- F Food and Cooking How to Make Mayonnaise at Home? Secrets of Homemade Mayonnaise...
- C Computers and Internet Which Phone is Best for Internet Surfing?...
- F Food and Cooking Everything You Need to Know About Pasta...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
Answers on questions: Business
- B Business George and jerry are competitors in a local market. each is trying to decide if it is better to advertise on tv, on radio, or not at all. if they both advertise on tv, each will earn...
- B Business Grand inc. uses the cost method to account for treasury stock. after a recent transaction, the firm recorded a $34,000 debit to cash and a $41,000 credit to treasury stock. what else...
- B Business Sherman has budgeted sales for the upcoming quarter as follows: april may june units 1,600 1,900 1,750 the desired ending finished goods inventory for each month is one-half of next...
- B Business When an individual is looking to manage the reputation and policies of an organization, the commitment to doing the right thing becomes more about following the written ethics policy...
- B Business Harry owns a barber shop and charges $6 per haircut. by hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. by hiring a second barber at the same...
- B Business Gopal bought a schwinn road bike in good condition from a used bike shop for $160, thinking he got a steal. when he got home and searched for his bike on the internet, he found the...
- B Business Nuan, a television manufacturer in korea, had to modify its televisions before introducing it to the zimbabwean markets, as the country did not have the skills to repair the product...
- B Business Whispering winds corp. redeemed $174,000 face value, 9% bonds on april 30, 2017, at 104. the carrying value of the bonds at the redemption date was $157,221. the bonds pay annual interest,...
- B Business The ultimate goal of the capital budgeting process is to ) determine the effect of the decision to accept or reject a project on the firm s cash flowsb) determine how the consequences...
- B Business The multiplier for a futures contract on a certain stock market index is $250. the maturity of the contract is one year, the current level of the index is 1,500, and the risk-free...
Ответ: