Case Brief: Fred and Ralph v Retiree Home Owners

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Written by:

Karen M


Date added:

May 2, 2016








No of pages / words:

2 / 367


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Ralph, whose firm did the construction on these lots, knew that there was no water on the project but still accepted the notes and attempted to collect on them. 2. Type of Action: The retirees refused to pay on the promissory notes due to the false promises, so Ralph discontinued construction and filed suit against them for failure to pay...
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Ralph stated that he was a holder in due course, but the retirees claimed defenses to payment of the notes. 3. Issues: a. Court Holding: Taking all factors into account, I think that the courts would have found for the defendants on the basis of "fraud in the factum." b. Legal analysis: Fraud in the Factum is where misrepresentation induces one to enter into a transaction without understanding the risks...
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