business law (us) --> REMEDIES

10.Captain Construction Inc. was bidding to build a six-story hotel in downtown Dryden, NY.It solicited bids for the plumbing part of the large project.Patient Plumbing, LLP mailed a written bid of $90,000 for all the plumbing work, "bid valid for 30 days" and the bid was received on the 3rd of the month.On the 10th of the month, Captain bid on the hotel, relying in part on the $90,000 bid from Patient, and was awarded the overall hotel project contract, the contract for the hotel project received on the 14th of the month.On the 14th Captain mailed the acceptance of Patient's bid to Patient.However, on the 13th of the month, Patient had previously mailed a letter containing a revocation of their prior offer, explaining that they had accepted another job so they had to withdraw the offer, and thanking Captain for their interest.That letter was received by Captain on the 16th.Captain contacted Patient and demanded they make good on their original offer, but Patient explained they could not do both jobs at the same time, and the other job paid better.Captain hired a different plumber and had to pay them $146,000 for the work, and thensuedPatient for the $56,000 difference.

a.Was there a valid contract?Explain whether the revocation or the acceptance was effective.

b.What is the resultfor Captain in court?

c.Fully explain the contract theory(ies) that apply.

11.Sarah was looking for a house and saw Barry's house for sale for $350,000.She was shown the house, which had a well-equipped gym (bench, barbells, dumbbells, treadmill, stationary bike, etc.) and she loved it.She offered Barry $325,000.Barry countered with $345,000.She replied that she would go for it, but only if Barry included all the gym equipment.Barry agreed.She signed the contract, provided $30,000 earnest money (down payment) and the closing was scheduled.However, the day of the closing, Sarah did a walk-through and discovered the gym equipment was gone.At the closing, she refused to pay unless the gym equipment was provided.Barry explained that the movers came when he was not present, and must have taken it, but then Barry's sister Esther (who was visiting and had completed BUAD 201)pointed out (correctly) that the contract did not include the gym equipment, and the contract had a merger clause; so even though that was not Barry's intent, Sarah was out of luck and had to buy the house even without the equipment.Sarah said "Forget it, you are dishonest- I'm out!" and left.Barry sued Sarah and Sarah countersued.

a.Assume Barry's position was that he would keep the $30,000 and that it would settle the action, and of course, Sarah sued to recover the $30,000.What would Barry's justification be to keep it?

b.Assume the same facts as in "a"- would it matter if Barry sold the house two weeks later for $360,000?Would a court permit Barry to keep the money?

c.Assume the same facts as in "a"- would it matter if Barry sold the house two weeks later for $310,000?Would a court permit Barry to keep the money?

d.What types of remedies wouldSarah be seeking?Explain all the possibilities.

e.What would be the result in court? Was there a valid contract?Explain fully.

12.Lady Goober, a national recording artist, agree to play at the Rochester Arena on July 4th, for $90,000.The contract included a clause that stated: "if for any reason, including but not limited to,illness, transportation difficulties, or bad weather, the performance is canceled by Goober, Goober shall pay $5,000 to the Arena as damages."

a.What specific category is the $5,000 clause?

b.Is that clause enforceable?Explain.

c.Would the clause be enforceableif the amount was $50,000?Explain