Download Contract Disputes: Painting Agreement and Motivational Speaker Engagement and more Exams Contract Law in PDF only on Docsity! Student Exam # __________ Sylvester: Contracts II, Final Exam, Spring 2012 Page 11 of 12 PART II Note: This examination is intended to test only material covered in the spring semester of our year-long Contracts course. Do not waste time discussing matters covered exclusively in the fall semester, such as offer, acceptance, the statute of frauds, etc. Ignore any concerns re statutes of limitation. Essay Question #1 (30 points): Olivia owned an apartment building containing 10 apartments, and another containing five apartments. She decided to have the interiors of all 15 apartments painted. After reviewing proposals from several painters, Olivia entered into a valid, written agreement with Pam. According to the contract, Pam was to do a “top quality, professional job” painting each apartment, and Olivia was to pay Pam “$1,000 per satisfactorily completed apartment (i.e., $10,000 for the larger building and $5,000 for the smaller building, for a total of $15,000).” As an afterthought, the two also agreed that Pam would provide certain replacement hardware such as hinges and doorknobs, and new faceplates for all electrical outlets and switches. Pam was to purchase these items using her contractor’s discount and provide them to Olivia for 10% more than they cost Pam. Pam was not to install these items; Olivia figured she could save some money by having her “handyman” do so. Pam and her crew started on the larger building and, by the end of the third day, they had finished painting the first two apartments. “These look great!” said Olivia. “Thanks,” replied Pam; “Please make the check out to “Pam’s Perfect Painting.’” Olivia looked puzzled, and it was soon apparent that the two had different understandings of the payment term in the contract. Olivia refused Pam’s request for a $2,000 payment upon completion of the two apartments. “Every commercial painter in this town knows that’s how it’s done!” said Pam. “Well, I don’t live in this town and I am not a commercial painter,” replied Olivia. Pam protested but continued painting. A week later, she had finished six of the apartments in the 10-unit building. Olivia again expressed her approval. She also apologized for the misunderstanding about payment. Five days later, Pam and her crew had finished painting all 10 apartments in the larger building. Pam again requested payment from Olivia. “But the contract says I will pay you when you finish the entire job,” said Olivia. “No, I should have been paid for completing each apartment, but you certainly must pay me $10,000 now that I have finished the first building,” replied Pam. “OK, so maybe that is what the contract means,” said Olivia, “But I am not satisfied with your work on the last four apartments you painted. What’s more, you only gave me 100 faceplates, and I need 101.” “What you think about the painting does not matter,” said Pam. “I did a ‘top-quality, professional job’ and that is what the contract calls for. You owe me $10,000.” “I will pay you $15,000 when you finish painting all the apartments in the second building,” said Olivia, “but only if I am satisfied with your work.” Pam stopped work and sued Olivia; Olivia counterclaimed. Discuss likely arguments, outcomes and remedies.
