contract business law

1. Duke decided to sell his car. The car’s muffler had a large hole in it, and as a result, the care made a loud noise. Before showing the car to potential buyers, Duke patched the hole with muffler tape to quiet it. Perry bought the car after test driving it. He later discovered the faulty muffler and sought to avoid the contract, claiming fraud. Duke argued that he had not committed fraud because Perry had not asked about the muffler and Duke had made no representation of fact concerning it. Is Duke correct? Explain your response.

2. Thomas Silverman, who was elderly and partially disabled, lived alone on a 25 acre farm. Mr. Silverman called the son of a friend, Jonathan Smith and said “If you move in with me and take care of the farm and me, it will be yours when I die.” Mr. Smith did as Mr. Silverman requested and on Mr. Silverman’s death two years later, Mr. Smith claimed the farm. Mr. Silverman died without a will and did not re-title the farm in Mr. Smith’s name before he died. Mr. Silverman’s next of kin who are handling his estate are contesting Mr. Smith’s claim to the farm. Is Mr. Smith entitled to the farm? Explain your reasoning. What additional facts might you want to know in making your decision?

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