As part of creating an estate plan, an attorney will likely do all of the following, except:
- distribute property to beneficiaries.
- take an inventory of the client’s assets.
- learn the client’s objectives.
- draft the instruments necessary to carry out the plan.
Spokes Bicycles has a contract with Trail Parts, Inc. that requires Spokes to buy 200 bicycle gears from Trail at a price of $50 per gear. For an unknown reason, Spokes cancels the contract after Trail has already finished manufacturing all 200 gears. Trail offers the gears to ACE Bikes for $20 each. ACE is shocked by the great deal because these types of gears normally retail for $50. ACE agrees to purchase the gears. Trail then sues Spokes for its lost profits. Which of the following is true?
- ACE bikes must pay Trail $50 per gear.
- Trail is not entitled to damages because it was able to resell the goods.
- Trail’s damages will be limited because its resale was not in good faith and in a commercially reasonable manner.
- Trail will be able to recover damages for the difference between the resale price and the price the buyer agreed to pay in the contract.
Distribute property to beneficiaries is not something that an attorney is likely to do as part of creating an estate plan. Whereas the remaining ones are the ones that an attorney is likely to do in this context.
Trail’s damages will be limited because its resale was not in good faith and in a commercially reasonable manner is true in the case. Whereas the remaining ones would be considered as false in this context.