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There are issues of UCC, perhaps, failure to perform, perhaps, ambiguity, perhaps, form of the contract, perhaps, causality perhaps, just to mention a few. Assume
There are issues of UCC, perhaps, failure to perform, perhaps, ambiguity, perhaps, form of the contract, perhaps, causality perhaps, just to mention a few. Assume that I am Sergeant Schultz and that "I know nothing". Make sure that you completely explain everything to me.
Mrs. Leone is a widow and has been a terrific mother and grandmother to her family for years. She inherited some property from her deceased husband and one of the properties is a 45,000 square foot warehouse. She wants to turn her warehouse into a restaurant. She knows that a significant amount of work will have to be done to the warehouse before she can make the project work. California is on the cutting edge of renewable energy and passive heating so she decides to install an innovative solar heating system.
She looks for some referrals and finds a contractor called Solar Controller. She meets with them and gets an agreement to install it at a cost of $120,000. The contractor's son, Bo, wants to use the equivalent of two parking spaces in the warehouse parking lot for his business. If Leone agrees to designate two parking spaces for Bo's use for five years, SC will drop the price to $75,000. On November 13, 2022, the parties agree to the arrangement in a contract in which SC promises to start the job on November 17th, 2022 and to complete it by January 1, 2023. The contract includes a recital stating:
"Timely performance by SC is important to avoid any delay in the opening of Mama Leone's restaurant... further there are other contractors who will follow once the heating is installed".
Assume that California State law requires that all installations of the new solar systems be done by a certified solar technician. On November 15th, the only certified technician who works for Contractor, Lucky, is injured in a car accident. SC immediately notifies Ms. Leone and advises her that the start of the work will be delayed because of Lucky's accident. It turns out that there were other installers but that they were committed. Further, there is a provision in the California Codes which allows for an appeal of the requirement of the rule that a certified installer be involved, on site. The company may have been able to hire another installer or pay an assistant to Lucky who could supervise remotely. Each alternative had associated costs.
Leone replies, "You know that on-time performance is crucial. Yesterday, the city announced special tax breaks for businesses that open by the end of the year. Can you still finish by then?" SC says, "I don't know when we can start. It depends on how quickly Lucky recovers."
Leone tells SC that she is terminating the contract. Leone finds an alternative supplier of a similar system at a cost of $160,000, but they can't start work immediately and the restaurant opens in February of 2023. Leone missed the deadline for the city tax break.
Leone sues SC for breach of contract. Bo sues Leone for breach of contract, seeking damages for Leone's failure to provide the two parking spaces.
In court, the argument for Leone is that there was a breach of contract and therefore she could leave the contract and find another contractor. She further argues that there was not definiteness and certainty of terms as to the "two parking spaces " for Bo and therefore not an enforceable contract.
SC argues that there certainly is a contract and further that even Leone alleges that in her complaint and that his addendum is clear.
Please review this fact pattern. Was there a valid offer and a valid acceptance? Please tell me what an offer is and what an acceptance is. What are all of the arguments for Leone and all of the arguments for BO and SC? Who should prevail and why?
Mrs. Leone is a widow and has been a terrific mother and grandmother to her family for years. She inherited some property from her deceased husband and one of the properties is a 45,000 square foot warehouse. She wants to turn her warehouse into a restaurant. She knows that a significant amount of work will have to be done to the warehouse before she can make the project work. California is on the cutting edge of renewable energy and passive heating so she decides to install an innovative solar heating system.
She looks for some referrals and finds a contractor called Solar Controller. She meets with them and gets an agreement to install it at a cost of $120,000. The contractor's son, Bo, wants to use the equivalent of two parking spaces in the warehouse parking lot for his business. If Leone agrees to designate two parking spaces for Bo's use for five years, SC will drop the price to $75,000. On November 13, 2022, the parties agree to the arrangement in a contract in which SC promises to start the job on November 17th, 2022 and to complete it by January 1, 2023. The contract includes a recital stating:
"Timely performance by SC is important to avoid any delay in the opening of Mama Leone's restaurant... further there are other contractors who will follow once the heating is installed".
Assume that California State law requires that all installations of the new solar systems be done by a certified solar technician. On November 15th, the only certified technician who works for Contractor, Lucky, is injured in a car accident. SC immediately notifies Ms. Leone and advises her that the start of the work will be delayed because of Lucky's accident. It turns out that there were other installers but that they were committed. Further, there is a provision in the California Codes which allows for an appeal of the requirement of the rule that a certified installer be involved, on site. The company may have been able to hire another installer or pay an assistant to Lucky who could supervise remotely. Each alternative had associated costs.
Leone replies, "You know that on-time performance is crucial. Yesterday, the city announced special tax breaks for businesses that open by the end of the year. Can you still finish by then?" SC says, "I don't know when we can start. It depends on how quickly Lucky recovers."
Leone tells SC that she is terminating the contract. Leone finds an alternative supplier of a similar system at a cost of $160,000, but they can't start work immediately and the restaurant opens in February of 2023. Leone missed the deadline for the city tax break.
Leone sues SC for breach of contract. Bo sues Leone for breach of contract, seeking damages for Leone's failure to provide the two parking spaces.
In court, the argument for Leone is that there was a breach of contract and therefore she could leave the contract and find another contractor. She further argues that there was not definiteness and certainty of terms as to the "two parking spaces " for Bo and therefore not an enforceable contract.
SC argues that there certainly is a contract and further that even Leone alleges that in her complaint and that his addendum is clear.
Please review this fact pattern. Was there a valid offer and a valid acceptance? Please tell me what an offer is and what an acceptance is. What are all of the arguments for Leone and all of the arguments for BO and SC? Who should prevail and why?
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