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Recently, in certain jurisdictions, courts are imposing a contractual obligation for the care of an elderly relative like a parent, infirmed aunt/uncle or other relative. For instance, if a person provides financial support such as sending $500 a month to such relative and/or is responsible for taking the relative to doctor’s appointments, grocery store trips, and other transportation needs, some courts are now saying that there is an implied contract between the person providing the care and the infirmed relative. Is this fair? are there avenues to “get out” of such a contract?

Clinton William executed a promissory note as general partner on behalf of Monica West Office Condos, Ltd. (the partnership). He also executed a guarantee written by the Bank which limited his liability to 25% of the indebtedness. This note was for a loan issued by Congress Bank. The loan was also secured by a deed of trust for the partnership’s real property.

The partnership defaulted on the note. After the property was sold, a deficiency of $920,000 was left.

These events took place in Texas. Under Texas law general partners of a limited partnership are personally liable to creditors for the limited partnership’s debts the same as a partner in a general partnership.

Clinton argues that because the guarantee limits his liability to 25% of the indebtedness, his liability as general partner is similarly limited. How do you think the court should rule?

1. What factors might you consider in deciding whether to insist on a jury trial?

2. Name two forms of discovery. What are the advantages and disadvantages of each?

3. You file a complaint for breach of contract, claiming that you are owed
$300,000. The day you file your complaint, your opposing party offers
to settle by paying you $150,000 immediately. Should you take this
offer? What factors should you consider in evaluating the offer?

4. What are some of the freedoms that the Constitution guarantees the citizens of the U.S.?

Martha Mart owned stock in Napkin Inc., a company that she is also a director of. During a board meeting she was informed that a new product that was to be launched by Napkin was not approved by the FDA. Knowing that once this information became public knowledge the stock would tank, she instructed her stockbroker to sell all her Napkin shares. At the time of her sale Napkin was trading at $60. After the information about the denial of approval for the new product was reported by CNN, the share price fell to $1.50. Was Martha’s action legal? Was it ethical? Why or why not? Who did her actions affect and how?