"Homework No. 1Marian contracted to sell her restaurant to Billings for $400,000. The contract provided that Billingswould pay $100,000 and sign a note for the remainder. Billings sold the restaurant to Alice, who agreedto assume responsibility for the balance due on the note held by Marian. But Alice had difficulties anddeclared bankruptcy. Is Billings still liable on the note to Marian?Answer: Yes, unless Marian allows or agreed to have a separate agreement to Alice and released thebills, so billing is still responsible for the original debt. This case Alice needs to get the money in orderto buy the restaurant from the billing who will then takes the money and pays to Marian. Marian'sbilling contract remains to stand while Alice Billings contract is affected.Rusty told Alice that he’d do the necessary overhaul on her classic car for $5,000 during the month ofMay and that when the job was done, she should send the money to his son, Jim, as a graduationpresent. He confirmed the agreement in writing and sent a copy to Jim. Subsequently, Rusty changed hismind. What right has Jim?Answer: Assuming that the payment is to cover the costs of the Rusty and overhaul then decided notto comply the overhaul but then no money would change hands. Since Jim had no part in theagreement other than receiving the funds, so he has no rights at all. An agreement or a valid contactrequired multiple parties to invest anything or something such as money, effort, and much more. Jiminvesting nothing, so he has no legal position or standing to received anything. Rollins sold Byers, a businessperson, a flatbed truck on a contract; Rollins assigned the contract to Frostand informed Byers of the assignment. Rollins knew the truck had problems, which he did not reveal toByers. When the truck needed $3,200 worth of repairs and Rollins couldn’t be found, Byers wanted todeduct that amount from payments owed to Frost, but Frost insisted he had a right to payment. Uponinvestigation, Byers discovered that four other people in the state had experienced similar situationswith Rollins and with Frost as Rollins’s assignee. What recourse has Byers?Answer: Byers have an opportunity to file a case against Rollins due to the negligence of his trucks. Heshould make a statement that Rollins has to pay his damages off all the failures he has done.Homework No. 2On August 8, 1998, the plaintiff, Elaine Exercise, entered into a contract with the defendant,Cosmopolitan Spa International, Inc "CSI". The contract was for a spa membership that was to include"processing, program counseling, and facilities usage."The written contract contained an exculpatory clause. The pertinent part of the clause stated, "Memberfully understands and agrees that in participating in one or more of the courses or using the facilitiesmaintained by CSI, there is the possibility of accidental or another physical injury. Member furtheragrees to assume the risk of such injury and further agrees to indemnify CSI from any and all liability toCSI by either the Member or third party as the result of the use by the Member of the facilities andinstructions as offered by CSI." On or around January 1, 2000, CSI sold the spa to Holiday Spa, Inc. OnFebruary 25, 2000, Elaine Exercise injured her back when she sat on an exercise machine and itcollapsed under her. She brought suit against both CSI and Holiday for damages for personal injuries resulting from the defendants' negligence in properly maintaining the exercise machine. The defendantsclaimed that the exculpatory clause negated their liability. Elaine argued that Holiday could not use theexculpatory clause as a defense because it was part of a contract for personal services, and thereforethe contract was not assignable. What will the court decide? Discuss fully.Answer: It is very clear that Elaine entered the contract on Cosmopolitan Spa International, "CSI", thiscontract is regarding for a spa membership that was includes the following; program. Processingcounseling, and facilities usage. In this contract, stated that the members have already agreed on theterm and condition once they have the membership. One of the agreements was the member'sliability or even the third party in using the facilities offered by the CSI. On January 1, 2000, CSI soldtheir spa to Holiday spa, Inc. In the following month, Elaine was injured when she sat on the exercisemachine because it was collapse under her, so the accident happened. So, because of this, Elaine wasbrought suit against CSI and Holiday spa for damages resulting from defendants. The Holiday spa was now the owner of CSI spa where Elaine was one of the members of it. Based onthe agreement, members are liable for any damages in using the facilities offered by CSI spa. But,when it was sold to the Holiday spa, there is no clear agreement about the conditions, therefore, theagreement and the instructions offered by the CSI was still remains and the Holiday is still no rights touse the exculpatory clause as a defense because it is still part of the contract that Elaine have. Thecourt must decide a clear resolution for this situation by providing a statement that the contractshould temporarily be close until all the facilities, machines, and some equipment will perfectly well- function and manageable. The court should make a statement that the CSI and the Holiday spa willpay their obligations to Elaine's injuries and damages because it was their responsibilities to makesure the safeties of their members and users under their management. Homework No. 3Most lease agreements (for an apartment - residential; or for space - commercial) contain a clausespecifically addressing the right to assign the lease.Use your favorite internet search engine and locate a lease agreement. Find the clause dealing with theassignment and answer these questions:1. What is the URL of the lease that you found?2. What does the clause say?3. What would happen under the contract if the lessee assigned the lease?4. What would happen under the common law if the lessee assigned the lease? (Hint: You might need todo a bit of additional research to answer this one.)Answer: No. 1 URL for the lease: http://smallbusiness.findlaw.com/business-operations/commercial-lease- agreement-overview.htmlNo. 2: The clause says to protect the property from any damages and limit the liability of the certainproperty owner. An exclusive clause will prevent the landlord from renting the space to thecompetitors.No. 3: No, it is not necessary wrong. If the lease sells the equipment to someone else that does notbelong to him then it becomes stolen equipment. Then the buyer is in possession of stolenequipment. If the buyers know or should know that the equipment is stolen, he is committing a felony. It is punishable by time in prison. The material is the return to the original owner. Can bebroken, renegotiated or affirmed, all with Court approval.No. 4: The original lessee is still responsible for all the terms and the conditions of the lease, even thelease was assigned. "