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,Slimline and Distributor signed a contract providing that Dis reasona being sol

ID: 415995 • Letter: #

Question

,Slimline and Distributor signed a contract providing that Dis reasona being sold in Warehouse Club. Aft nducting in-store demos of Sliml Aline's diet drink. Slimline was already Slimline Warehouse requested. Sales of Slimline continued to arehouse requies of Smli aidract was signed, Distriburor stopped ne. It did not repackage the product as of the contract. Slimline sued Distributor, alleging a vio lation of the agreement. Who should win? 5. YOU BE THE JUDGE WRITING PROBLEM Chip bought an insurance policy on his house from Insurance Co. The policy covered damage from fire but explicitly excluded coverage for harm caused "by or through an earthquake. When an earthquake struck, Chip's house suffered no fire damage, but the earthquake caused a building some blocks away to catch on fire. That fire s Insurance Co. liable to ent for Insurance C Chip? Argument for Insurance or more explicit. If there had been no earthquake, Chip's house would still be standing. The policy does not cover his loss. Argument for Chip: His house o.: The policy could not have been clearer was not damaged by an earthquake; it burned down. The policy covered fire damage. If a contract is ambiguous, it must be interpreted against the drafter of the contract.

Explanation / Answer

4. As per the agreement, the warehouser must perform his duties. Forget about the sales and their increase, the warehouser or the party to the agreement has to deliver the obligations as per agreement. But in this case it is identified that they do not provided demos inside of the warehouse to the customers. Hence Slimline can win the case and the middlemen has to compensate the loss.

5. In this case, the insurance company must pay loss to Chip. Because the ultimate damage is caused with fire only. Even the earthquake happens, there wont be any problem. But due to the fire only, the valuable furniture, and total house is demolished. Hence the insurance player must compensate the loss to Chip without any litigations.