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Housing Green signed a letter saying that he would have Clay Tile complete the roofing work on a building being constructed with Housing Green, other
Housing Green signed a letter saying that he would have Clay Tile complete the roofing work on a building being constructed with Housing Green, other contractors and Clay Tile, agent for Ever- Tite Roofing Company. The agreement language stated that "this contract was subject to Ever- Tite's approval and that the agreement would become binding upon written notice of acceptance or commencement of work with-in ten days", however it was clear that Clay Tile and Ever-Tite should "inform Green of their decision as soon as possible. Seven days after the letter, Ever-Tite verbally told Clay Tile that they approved of the contract, that he should contact Housing Green and that they would cover expenses after the completion of the job. Eight days after the letter, Clay Tile purchased new roofing equipment on credit and in his own name from Cavalry Building Equipment (CBE) in the sum of $20,000. Nine days after posting the letter, Clay Tile loaded up his truck and drove to Green's house, only to find that Johnny on the Spot Roofing was already doing the job. CBE, refuses to take the equipment back from Clay Tile and and Ever-Tite is refusing to honor their verbal commitment to help Tile with the expenses of th equipment. Ever-Tite wishes to sue Green on the contract for damages. Was Green's offer to Ever-Tite accepted before the offer was revoked? What is Green's best argument in defense? Are there any equitable remedies to these issues? Are there any additional facts that you would need to know to further answer this question? (10 points). 1
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