FRANK BUILDS A GARAGE

Frank, a contractor, agrees to build a garage for Sarah. In return, Sarah will pay him $15,000. Frank gets most of his materials for his construction jobs from the Lumber Supply Store .He has an account with them, meaning the Store lets him buy materials on credit. Frank typically pays on his account once per month. During the time Frank was building |the garage for Sarah, his monthly payment to the Lumber Supply Store became due. However, he didn't have any cash on hand.

Answer the following questions in the space provided below:

1. Scenario #1 -- If Frank had a $15,000 promissory note from Sarah, how could he use it to pay the Supply Store?

2. Scenario #2 -- If instead of a promissory note Frank had a $15,000 contract from Sarah, how could he use it to pay the Supply Store? (To fully understand this scenario, you should refer back to chapter 17)

3. Let's pretend that Frank messed up Sarah's garage. He put on the wrong roof; Sarah asked for a metal roof and Frank put on a shingle roof. When the Supply Store goes to Sarah to get paid the $15,000, does Frank's breach matter? In other words, can Sarah use Frank's breach as a defense against paying the Supply Store in Scenario 1? In Scenario 2?

FOR BUS LAW I chapter 31-32