Question
Ronald Smith owns a home at 7890 Brookfield Lane, Chicago, Illinois. The garage in the back of, the house is beginning to fall down so
Ronald Smith owns a home at 7890 Brookfield Lane, Chicago, Illinois. The garage in the back of,
the house is beginning to fall down so he decides to build a modern two-car garage in its place.
He calls Garages R Us for a free estimate on a new garage. Sam "the Salesman" Jones comes out
and shows Mr. Smith the various styles of buildings and the costs involved. In addition to the
pictures, Mr. Jones tells Mr. Smith that once they tear down the old garage, they put a 1/4" layer
of gravel down. They then lay 10 steel rods widthwise and 4 steel rods lengthwise on top of the
gravel. Only when that is done do they start pouring the concrete. The extra gravel and rods
(which are not done by every company) are designed to give additional strength to the floor so
that there will never be a problem with it being able to hold 2 automobiles at one time. Sam
shows him some diagrams of what he is talking about.
Ronald is impressed and chooses the garage he likes best. Sam then asks how he intends to pay
for the work. When Ronald tells him that he was going to go to a bank to get a loan, Sam tells
him about the financing options they have through Garages R Us. Ronald likes the terms and
signs a contract for the building of the garage (which does not contain any information about the
gravel or the rods and does not contain any pictures as he had been shown) subject to approval of
the financing.
After the financing is approved, Garages R Us assigns their rights to payment from Ronald to the
Bedford Park Savings and Loan Association. Notice is sent to Ronald of the assignment.
The workmen tear down the original garage and start to construct the new one. Ronald, who is
retired, watches out of his back window every day as they work: As they begin to lay down the
gravel and rods, he notices that they are not doing what he had been told they would do. They
have scattered some gravel across the ground, but in no way is it 1/4" thick. They have spread
some rods across the ground, but there are 4 across widthwise and 2 across lengthwise.
Ronald immediately rails Sam and begins to complain. Before Sam can get out to the house to
talk to Ronald, the workers poured the concrete and it set. Ronald wants the concrete broken up
so that he can show Sam what is underneath. Sam tells him that if they do that, Ronald will be
responsible for the cost of laying down new concrete. They get into a shouting match, Ronald
tells the workers to stop work and Sam leaves.
After one month goes by, the Bank calls Ronald to find out where the first month payment is.
Ronald tells the Bank that he is not going to pay for work that wasn't completed and wasn't done
right to begin with. The Bank and wants to sue Ronald. Ronald wants to sue Garages R Us.
In your opinion do any of them have a good cause of action to sue anyone. If sued, does anyone
have any defenses? In addition to the elements of a contract, you may wish to discuss breach,
material breach, assignment, preventing performance, parole evidence and misrepresentation.
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