Contracts Case – Agreement Element
Facts:
Ty owned an older house in The Lakes subdivision, a house in dire need of repair and painting. In particular, much of the wood siding was rotted, and some stucco had peeled off. And several pieces of wood around the windows were beyond repair and needed replacing. Also, some glass panes in several windows were broken and needed replacing. And, the entire house needed painting.

Ty contacted Hank the Handyman to ask for a bid on the work. Hank looked everything over and said the following:

Hank: “I’ll need a good deal of wood siding and other lumber to replace the rot, and glass for the windows, and primer and paint, and stucco materials. All total, these materials will cost around $5,000. My cost to do the repairs and painting will be $3,000, for a total of $8,000.”

Ty: “That seems like a lot of money for fixing the place up and painting. I can pay $7,000 total. You must have all the work done by June first because my son is getting married here on June 4th. Getting this place back up to speed is really important to me, and now you know why.”

Hank: “Usually a job like this takes me and my helper 4 weeks from start to finish. I think can do it by June first if I hire another helper, so your total cost will now be $9,000.”

Ty: That would be great, and I’ll pay you your $8,000. I have to pay wedding expenses for my son.

Hank: I usually start a new job on a Monday. Hope my two helpers will start then. The $9,000 includes two helpers and all materials and labor. You are in a rush, right?

Ty: I don’t know how the house got so run down. It will be great to have it fixed up again.

Directions: Use the outline below as a guide to analyze this case which focuses on the Agreement element of contract formation. Point values for each part are shown in bold. This case is a mixed transaction case, one for goods and services. Write your Answer in the format/outline below. (100 points possible).

I. A. List the 4 elements of a contract. (10 points).
B. Define in detail the element of Agreement. (20 points)

II. A. Which law (Common Law or the Uniform Commercial Code Article 2) applies to this transaction? To answer this question, apply the Predominant Factor Test to the facts of the case. Why is this determination important? (10 points)
B. What constitutes Agreement under the Common Law? (10 points)
C. What constitutes Agreement under the UCC Article 2? Explain in detail. (10 points)

III. Did the parties form an Agreement?
A. Which law applies to this case, and why do you think so? (10 points)
B. What are the offer terms? (10 points)
C. What are the acceptance terms? (10 points)
D. Answer: Yes or No, the parties formed a contract. Why do you say so? (10 points)

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Posted on May 28, 2016Author TutorCategories Question, Questions