Anthony is starting a business that provides services for the elderly. He rents office space and hires a highly respected interior design firm, Sugarbakers, to decorate the lobby. Because Anthony wants his clients to be reminded of their youth, he tells Sugarbakers ONLY that he wants the lobby to look "like the 1960's in America." Sugarbakers replies, "Terrific idea! We can definitely do it!" Anthony gives no additional instructions, and Sugarbakers does not ask any follow-up questions. Everyone smiles and looks happy. Anthony says he wants the works completed by August 1, and Sugarbakers tells him it's no problem. Everyone smiles more and looks even happier. Work begins on July 15, the same day that Anthony leaves for vacation on a deserted, tropical island. He is gone and unreachable until late on July 31. Sugarbakers completes the work on July 31, and well within budget. Anthony walks into the office on August 1 and learns that people remember the 1960's in very different ways. He sees that the office is beautifully decorated in a 1960's 'Woodstock' style, which is the opposite of the 1960's 'Mad Men' style that he had wanted and intended. Anthony brings a lawsuit against Sugarbakers alleging breach of contract. What is the likely outcome and why? Sugarbakers wins. They substantially performed, so the contract is discharged and they do not owe Anthony anything. The contract may be rescinded because there was a bilateral mistake of material fact. O Anthony wins. Sugarbakers materially breached the contract because it performed in bad faith. O Sugarbakers wins. They completely performed, so the contract is discharged, but they do owe Anthony some measure of damages.

Anthony is starting a business that provides services for the elderly. He rents office space and hires a highly respected interior design firm, Sugarbakers, to decorate the lobby. Because Anthony wants his clients to be reminded of their youth, he tells Sugarbakers ONLY that he wants the lobby to look "like the 1960's in America." Sugarbakers replies, "Terrific idea! We can definitely do it!" Anthony gives no additional instructions, and Sugarbakers does not ask any follow-up questions. Everyone smiles and looks happy. Anthony says he wants the works completed by August 1, and Sugarbakers tells him it's no problem. Everyone smiles more and looks even happier. Work begins on July 15, the same day that Anthony leaves for vacation on a deserted, tropical island. He is gone and unreachable until late on July 31. Sugarbakers completes the work on July 31, and well within budget. Anthony walks into the office on August 1 and learns that people remember the 1960's in very different ways. He sees that the office is beautifully decorated in a 1960 's 'Woodstock' style, which is the opposite of the 1960's 'Mad Men' style that he had wanted and intended. Anthony brings a lawsuit against Sugarbakers alleging breach of contract. What is the likely outcome and why? Sugarbakers wins. They substantially performed, so the contract is discharged and they do not owe Anthony anything. The contract may be rescinded because there was a bilateral mistake of material fact. Anthony wins. Sugarbakers materially breached the contract because it performed in bad faith. Sugarbakers wins. They completely performed, so the contract is discharged, but they do owe Anthony some measure of damages. Lon suffers an electrical burn on his face. It heals, but he is left with a small scar across his cheek. The town physician, Dr. Chaney, convinces him that the scar is ugly and should be removed. Chaney says he can perform a simple surgical procedure that, he promises, will give Lon a " 100% good face". Lon likes the sound of that and agrees to the surgery, paying Dr. Chaney an appropriate price up front. Despite Dr. Chaney's best efforts, the surgery goes very badly. Lon is hospitalized for a month after the surgery, is in great physical pain, and can't move his facial muscles. He sees several specialists, none of whom can help him. Lon sues Dr. Chaney for breach of contract. What is the likely result? Lon wins, and receives damages for pain and suffering, as well as for the cost of the specialists. Lon wins, and recover in damages the difference between the promised face and the face he actually received, in addition to costs covering the trips to the specialists. Lon wins, and receives punitive damages because the surgery's outcome was so poor. Dr. Chaney wins because he and Lon did not have a contract