Ganger, from the previous questions, decided to do some renovations on the deli. She contacted a contractor that was recommended by another business owner near the deli who had recently had some work done. Chris told her that he only works for cash and did not want a written agreement. She invited the contractor, Chris, to come to deli to look at the job. When they met, Granger indicated that she wanted the following work completed:

New interior paint

New floors

Shelves installed in a storage area

Washroom totally redone

After a couple days, Chris texted Granger with the following:

"I can start work Monday. I need $5000 upfront and can complete the job for $35000. Want to go ahead?"

Granger replied:

"that is more than I was expecting. I had budgeted $25000."

Chris responded:

"I can't do it for $25000. I would be working for free."

Granger replied:

"okay, lets go ahead. Ill expect you on Monday. I need the work done by May 1st for tourist season. Let me know if that's an issue".

Chris did not respond. He started work on Monday.

Unfortunately, things did not go as planned. Much to Granger's dismay, Chris did not finish the work until June 15th. From May 1st to June 15th, the weather was amazing, and Granger estimated she lost out on $30000 revenues due to lost customers during the reno. Then, Chris sent a final bill for $45000. He said that the work took longer and was more expensive because of electrical issues that he didn't know about in the bathroom. He had to bring in an electrician, which he had not expected. Granger was very upset. This was her response:

"I am not paying this bill. I didn't agree to $45000; our agreement was for $35000. Plus, your delay cost me customers. There is no way the electrical issue took 6 weeks to solve. If you want to get paid, you'll have to sue me".

To granger's surprise, Chris actually does sue her. His cousin is a lawyer and working for free. He claims that they never had an agreement and that he is owed $45000 on a quantum meriut basis. Granger thinks they do have a contract and that anything she owes him should be set-off by her losses from the late completion.

Please analyse this problem using the IRAC method. You will need to complete 2 analyses:

1.) Is there a contract? (Even if you conclude there is no contract, complete#2 below)

2.) Assuming there is a contract, did Chris breach it and what does damages might be available to Granger?