In early June, 201X, Daffy Lawn Care service convinced Elmer Fudd to sign a written contract whereby Daffy Lawn Care service would take care of various aspects of maintenance related to Fudd's lawn.Attached as Schedule "A" is a copy of their contract.

On October 8, 201X, Daffy Lawn Care delivered to Mr. Fudd invoice # 1319 for $245.21.Attached as Schedule "B" is a copy of that invoice.Assume that it is now January 15 of the next year and Mr. Fudd wishes to pay off the invoice.

Question:

In a group of four students, each student should review the contract and the invoice on their own and then reflect individually on the following question:

How much interest does Mr. Fudd legally owe to Daffy Lawn Care and why that

amount?

Now discuss and come to an agreement as a group, writing down your answer and your reasons.

Then be prepared to discuss with the class how much interest Mr. Fudd legally owes and why that amount.

Schedule "A"

A G R E E M E N T[1]

This agreement made on the4day ofJune, 201_X_, between:

Elmer H. Fudd

(Hereinafter referred to as the "Customer")

AND

Daffy's Lawn Care

(Hereinafter referred to as the "Contractor")

The Customer hereby hires the Contract to perform lawn care services under the deluxe package at the following residence:

16 Hunting Road, Georgetown, ON N1N 2F2

1.Any work or services over and above that specified in the deluxe package which is requested by the Customer or accepted by the Customer at the suggestion of the Contractor shall be quoted for separately and added to the invoice.

2.Invoices will be issued at the end of each month during the season and the total amount listed as owing will be due and payable within 30 days of the date of the invoice.Overdue accounts will accrue interest at a rate of 2.5% per month until paid in full.

3.The Contractor reserves the right to suspend delivery of further services if payments are not made within the aforesaid 30 day period(s).

4.The Contractor is responsible for supplying all labour, equipment and supplies required to perform the services specified in the deluxe package and agrees to perform all services in a good and workmanlike manner.

5.The Contractor shall carry proper insurance (including Workplace Safety and Insurance Act coverage for all workers) and have valid licences as are required by law to perform the work and provide the services specified for in this agreement.

6.If services cannot be carried out by the Contractor on a date as specified, then the Contractor shall re-schedule them as soon as possible.

7.The Client hereby gives the Contractor permission to access and enter upon the property at all times between 8 a.m. and 6 p.m. to carrying out the services called for under this agreement or as additionally agreed to between the parties.

8.The Client shall be responsible for the day-to-day care of the lawn as recommended by the Contractor and which is not part of the services outlined in the deluxe package or additionally agreed to between the parties.

9.This Agreement shall constitute the whole agreement between the parties and it supersedes and overrides any previous agreements or discussions between the parties whether done orally or in writing.

10.This Agreement shall be governed by and interpreted according to the laws of the Province of Ontario and should any provision hereof be interpreted or found to be invalid it shall be severed from and not affect the validity of the remaining terms of this Agreement.

Client's Signature ElmerFudd

Contractor's Signature D. Duck

Schedule "B"

Daffy's Lawn Care

6607 Grasshopper Rd.Invoice

Georgetown, N2N 2T2

Date10/8/201X

Invoice # 1319

Bill To:Ship To:

Elmer FuddElmer Fudd

16 Hunting Rd.16 Hunting Rd.

Georgetown, OnGeorgetown, On

N1N 2F2N1N 2F2

TermsNet 30 daysShip Date:10/8/201X

Due Date:09/9/201X

Description of ServicesAmount

Grub Control (Nematode Application)99.00T

Lawn Care Program - Visit # 4 Early Fall Fertilizer and Weed Control59.00T

Lawn Care Program- Visit # 5 Late Fall Fertilizer and Weed Control59.00T

Subtotal$217.00

Sales Tax (13.0%)$28.21

Total$245.21

Payments/Credits$0.00

Balance Due$245.21

Please pay within 30 days of invoice date.2.5% per month interest will be charged on due Accounts over 30 days outstanding.

[1] Some of wording for contract taken from site entitled "Free Lawn Care Contract" at http://www.free-legal-document.com/free-lawn-care-contract.html#lawn-care-contracts