Fritz Is Seriously Considering Bankruptcy Because He Has a Large

question 21

Essay

Fritz is seriously considering bankruptcy because he has a large number of outstanding debts,the principal ones of which are as follows: (1)he owes his ex-wife $25,000 in back alimony and child support; (2)he owes $20,000 in guaranteed student loans; (3)he has a lawsuit pending against him in which his ex-girlfriend is asking for $50,000 in damages (the suit is based upon the intentional tort of battery and arises from an incident in which Fritz got mad at his girlfriend and hit her);and (4)he owes the First Bank $20,000 for the loan securing his new sports car.Should Fritz file for bankruptcy?

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Definitions:

Revoked Unilaterally

The act of cancelling or reversing a decision, right, or agreement by one party without the consent of the other parties involved.

Chapter 11 Bankruptcy

A form of bankruptcy that involves the reorganization of a debtor's business affairs, debts, and assets, allowing the business to continue its operation.

Apparent Authority

An accountability doctrine whereby a principal, by virtue of words or actions, leads a third party to believe that an agent has authority but no such authority was intended. Also called ostensible authority and agency by estoppel.

Agency by Estoppel

A situation where a person is prevented by their own actions from denying or negating the existence of an agency relationship.