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 Ana, Bob and Cal were the sole directors and sole shareholders of Feet, Inc., a closely held New York corporation which owned and operated retail shoe stores. Ana, Bob, and Cal each owned 75 shares in the company. On January 2, 2002, Ana, Bob and Cal signed a written shareholders’ agreement which provided in pertinent part:  Upon the death of any shareholder, Feet, Inc. shall, within sixty (60) days of receipt of a written demand from a duly appointed estate representative, purchase the shares of the deceased shareholder for $1,000 per share. When the agreement was signed, the three directors orally agreed that the buyback provision would apply only if the corporation was making a profit.  In addition to being a director of Feet, Inc., Ana was also a licensed real estate broker and the sole director and shareholder of Ana’s Realty, Ltd., a New York corporation. In June 2007, the directors of Feet, Inc., with Ana participating, voted to enter into a contract with Ana’s Realty, Ltd. Prior to the vote, Ana disclosed to Bob and Cal that she was the sole shareholder and director of Ana’s Realty, Ltd. The vote was two to one with Cal voting against the contract. The written contract provided that if Ana’s Realty, Ltd. located a store for Feet Inc. to purchase, Ana’s Realty, Ltd. would receive the customary commission of six per cent (6%) of the sales price when title closed. Ana soon found a desirable store at a favorable price, and in October 2007, Feet, Inc. purchased it.  In November 2007, Ana sent a written purchase order to Sal, the president of Shoe Co., and ordered 2,000 pairs of boots, to be delivered to the new store on or about December 1, 2007. The terms of the purchase order called for payment in full upon delivery. > > On December 1, 2007, Shoe Co. delivered 2,000 pairs of running shoes to Feet, Inc.’s new store. Ana immediately had the shoes placed in an unlocked storage shed on Feet, Inc.’s property and notified Sal that she was rejecting the shoes. Sal told Ana that the shoes would be picked up within the week. However, three days later the shoes were stolen, and Sal told Ana that he was holding Feet, Inc. responsible for the loss of the shoes. Cal died in December 2007. On February 1, 2008, Executor was duly appointed as the executor of Cal’s estate. Executor gave Ana and Bob a written demand that Feet, Inc. purchase Cal’s shares of stock pursuant to the written shareholders’ agreement. Bob then informed Executor that Feet Inc. had not made a profit for the past three years, and therefore, the corporation would not buy back Cal’s shares. Executor has confirmed that Feet, Inc. has not made a profit for the past three years.  (a) Is Feet, Inc. liable to Shoe Co. for the loss of the running shoes?  (b) Was the contract between Feet, Inc. and Ana’s Realty, Ltd. voidable?  (c) Is evidence of the oral agreement admissible in an action by Executor to enforce Feet Inc.’s obligation to purchase Cal’s shares of stock under the written shareholders' agreement?

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QUESTION:Keith is a home handyman who advertises in the local Buderim Bugle as a qualified carpenter, although he has no trade qualifications.  Ruth is a homeowner and works as a teacher’s aide at a local school. Ruth arranges with Keith for him to replace a rotting timber tread on her ba ...

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