Instructions below

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BUSINESS LAW FINAL EXAM SCENARIO
Janet and her son Dominic (a 16 yo minor) are both owner/managers of an LLC they
incorporated to conduct business as a lawncare company. They have a 10-year lease for a
portion of a large commercial building as garage space from Bob where they store their
equipment and where they receive deliveries of items they order for their business. The
Lease is in the name of the LLC and Janet is the only signatory on the Lease. But both Janet
and Dominic have each given a personal guarantee that if the LLC fails, they will each be
personally responsible for the lease payments for the remainder of the term.
The Lease specifically states that the Landlord (Bob) must keep the roof and walls in
good repair. The Lease also states that Bob is not responsible for any negligent act of the
Landlord and that the Tenant must continue to pay rent, even if the garage is destroyed by
a negligent act of the Landlord.
Three (3) years into the Lease, the Landlord decides that he is going to take down
some of the commercial building that houses the garage to make space for a parking lot to
service other tenants. As Bob’s contractors start to demolish the building, the entire garage
roof starts to collapse (including the roof over Janet and Dominic’s space). The building
inspector condemns the entire building. Bob refuses to reimburse the LLC for any damages
and demands that the LLC continue to pay rent. Four months later, Bob demolishes the
entire building.
Assume you are Janet and Dominic’s attorney. In the first two to three pages of a 4-5
page paper, explain:
1.
Whether Janet has an enforceable contract with Bob;
2.
Whether Dominic has an enforceable contract with Bob;
3.
Whether Bob will be able to enforce the personal guarantee against Dominic;
4.
Whether Bob has breached any contractual agreement with Janet;
5.
Whether Bob has breached any contractual agreement with Dominic.
In the second 2-3 pages, assume you are Bob’s attorney and explain:
1.
Any defenses Bob has to a breach of contract claim;
2. Whether Bob is protected from any liability for the collapsed roof because of the nonliability for negligent acts clause;
3. If the roof had been damaged by a tornado, rather than his own act, would Bob have a
claim against Janet and Dominic if they stopped paying their rent.