Hailey and Ellen Met with an Auto Accident, as a Result

question 95

Essay

Hailey and Ellen met with an auto accident, as a result of Ellen's over speeding. Hailey has suffered injuries, and due to an aftershock and trauma, 'cannot remember' what caused the accident. Ellen, who has suffered injuries herself, takes advantage of the situation and convinces Hailey that the accident was no one's fault. They sign a contract agreeing that neither will sue the other for damages. Analyze the case if the contract is challenged in court.

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Definitions:

Management Power

The authority given to managers or executives to make decisions and oversee the operations of an organization or its assets.

Apparent Authority

A situation in which a person appears to have been given the power by another party to act on their behalf, leading third parties to reasonably believe that authority exists.

Partnership Agreement

A contract among business partners detailing the business structure, distribution of profits and losses, and rules for the partnership's governance and operation.

Formal Resolution

An official decision or declaration adopted by an organization or assembly through a formal process.