Laura and Juan have an agreement where Laura will sell Juan’s baseball card collection while he is out of the country. Juan does
not give any specific instructions on how this should be done. To fulfill her duty of obedience, Laura must: a. not perform on the contract and is excused from performance.
b. seek out instructions from Juan’s closest relative.
c. request specific instructions in writing.
d. act in good faith
Since there is already an agreement established between Laura and Juan which gives Laura the express permission to sell Jaun's baseball card collection while he is out of the country, Laura can go ahead and fulfill her duty of obedience even though there was no specific instruction given by Jaun on how the baseball card collection should be sold. Laura can act in good faith in discharging her duty of selling the baseball card collection of Jaun by deciding how the collection would be sold in an honest and fair way that would benefit Jaun.
Acting in good faith, in contract law, implies that parties to an agreement or contract are obligated to take honest and fair actions that would benefit both parties, and avoid taking any action that defeats the purpose of the contract.
Laura should act in good faith in deciding good ways of selling the collection that would favor both of them.
Explanation: A dedicated fund is a part of an income that is strictly set aside for a fixed purpose from the moment they are gotten.
A dedicated fund can take any format, some of which includes; money set aside for savings, money kept as tax, money set aside for insurance payments etc.
