Case Study Extended Practice

Chapter 6: How Contracts Come to an End

The comptroller of a corporation had an employment contract that had an express provision saying that the agreement would terminate if he were not re-elected to the office of treasurer of the corporation. The comptroller was subsequently promoted to chief financial officer of the corporation's parent company, and was asked to resign five years later. The comptroller filed an action against the corporation for severance benefits and accrued vacation under the employment contract. Does he win? Lubliner v. Helmsley-Spear, Inc., 227 A.D.2d 142 (S.Ct. of NY).

Wilson Trading Corporation sold some yarn to Ferguson so that he could make and sell sweaters. The sales contract stated that if there were any defects in the yarn, the customer had a limited time in which to notify Wilson. Ferguson received the yarn and washed it. The time period to report defects then expired. During the drying time, the yarn changed colors and made the sweaters unmarketable. Ferguson refused to pay for the yarn. Wilson Trading Corporation sued for breach of contract. Can Wilson Trading Corporation recover for breach of contract? Wilson Trading Corp. v. David Ferguson, Ltd., 23 NY, 2d 398.