Amber Machinery Company Purchased a Building from Ted for $250,000

question 5

True/False

Amber Machinery Company purchased a building from Ted for $250,000 cash and a mortgage of $750,000.One year after the transaction, the mortgage had been reduced to $725,000 by principal payments by Amber, but it was apparent that Amber would not be able to continue to make the monthly payments on the mortgage.Ted reduced the amount owed by Amber to $600,000.This reduced the monthly payments to a level that Amber could pay.Amber must recognize $125,000 income from the reduction in the debt by Ted.

Understand the enforceability of contract clauses, including exclusions of liability and limitations on liability.

Explore theories for recovery when a contract is breached or terminated, including restitution.

Analyze the implications of failure to perform contracted service and the pursuit of damages.

Understand the legal processes involved in rescinding a contract and obtaining restitution.

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Definitions:

Door-In-The-Face

A persuasion technique involving making a large, unreasonable request that is likely to be refused in order to increase the likelihood of agreement to a smaller request later.

Lowballing

A persuasive technique often used in sales where an initially lower price is offered to get agreement from the buyer, only for it to be raised before the sale is concluded, often for reasons made to seem unavoidable.

Informational Influence

A form of social influence that occurs when an individual turns to the members of a group to obtain and accept information about reality.

Foot-In-The-Door

A psychological technique where getting a person to agree to a small request increases the likelihood they will agree to a larger request later.