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Problem
Question I. The most significant figure in corporate finance and corporate structure is 51 percent. Discuss.
Question II. Explain the nature of the agency relationship in light of the principles of contract law.
Question III. Morton, a famous entertainer, agreed to host a telethon for the Society of Feathered Friends at half his usual $50,000 fee. A week before the telethon, $25,000 was paid into his account. Morton had spent many hours working up jokes about the Society of Feathered Friends, since his normal materials were not really suitable for the expected audience. On the morning of the telethon he awoke with laryngitis and no voice, and the doctor says he cannot perform.
Question i. Describe how this will affect the contract between Morton and the Society of Feathered Friends.
Question ii. If Morton had done some promotional ads for the telethon, would that change your answer to (i)?
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