Esther Agrees to Lease an Apartment from John

question 19

Multiple Choice

Esther agrees to lease an apartment from John.Before the signing of the contract, Esther asks John if the toilets in the apartment are all working properly because she is very particular about her toilets.John assures her that they are all working properly.There is no reference to the toilets in the written contract.After moving into the apartment, Esther finds that none of the toilets work properly.Which of the following is most likely to be a consequence?

• A)John is in breach of a collateral contract and Esther is entitled to damages.
• B)John has breached a condition of the lease and Esther is entitled to terminate the contract.
• C)John has committed the tort of negligence and Esther is entitled to damages.
• D)Esther is not entitled to any remedy: the lease was a written and signed contract and the parol evidence rule prevents John's verbal assurance from being included as a term of the lease.

---

Definitions:

Bonus

An additional payment or reward given to employees as an incentive or reward for performance.

Partnership

A form of business organization where two or more individuals agree to share the profits and losses of a business venture.

Noncash Assets

Assets that cannot be easily converted into cash, such as equipment, real estate, and intellectual property.

Capital Balances

The sum of funds invested by owners in a business along with any accumulated profits or losses.