Unilateral Contract Analysis - Contracts - Exam, Exams of Contract Law

Download Unilateral Contract Analysis - Contracts - Exam and more Exams Contract Law in PDF only on Docsity! file:///J|/Backups/WEB%20ARCHIVE/OLDSITE/Full%20Jan%2030%202008/exams/Content/1994x.htm[1/22/2009 3:23:28 PM] SAINT LOUIS UNIVERSITY SCHOOL OF LAW FINAL EXAMINATION Professor Frost Closed Book Exam December 13, 1994 3 hours CONTRACTS READ ALL THE FOLLOWING INSTRUCTIONS CAREFULLY Instructions (i) Write your examination number on your bluebook(s) and on this examination. Use only your examination number, not your name. (ii) This is an closed book examination. You MAY NOT use any materials. (iii) Statutory, case and restatement citations may be used but are not required. The better answers will include a thorough analysis of the issues presented rather than a string of citations. (iv) Conciseness and clarity of expression, organization and clarity of presentation, while not separately taken into account in the grade, necessarily have some impact on the grader's evaluation of your understanding of the subject matter. (v) This examination has 8 pages. Check that you have a complete examination. (vi) This examination consists of 5 questions. Each question is given a suggested time limit that corresponds to the weight given the question in the determination of your final grade. ALL ANSWERS MUST BE EXPLAINED. Your grade will be based on your analysis of the issues rather than your ability to come to a single "correct" solution. (vii) Remember that this is an examination of your understanding of the material covered in Contracts. Answer the questions based upon the Contracts readings and class discussions and not on the basis of material discussed or read in file:///J|/Backups/WEB%20ARCHIVE/OLDSITE/Full%20Jan%2030%202008/exams/Content/1994x.htm[1/22/2009 3:23:28 PM] your other classes. Question 1 45 minutes On April 1, 1994 Harry and Helen Homeowner engaged the services of Carl's Carpentry to renovate their fine old victorian home. The written agreement the Homeowners and Carl signed provided that Carl would remodel their kitchen, baths and the enormous entry hallway. The total price for the job was $20,000. The written agreement included detailed plans and specifications for all aspects of the work. The Homeowners were anxious to have the work completed because they were planning a party for their eldest son's college graduation on May 15, 1994. The agreement required that Carl be finished with all of the work by May 1, 1994 and, while they did not inform Carl of the reason, the Homeowners stressed the importance of finishing the work on time. Among the specifications was a description of the wallpaper to be used in the entry hallway. The agreement required Carl to hang "No. 37 blue flower" paper manufactured by National Wallpaper Co. The Homeowner's selected this particular wallpaper from a sample book provided by Carl before the agreement was signed. Immediately upon signing the agreement, the Homeowners paid Carl a $5,000 down payment and left town on a two week vacation. By the time the Homeowners returned from their vacation, Carl had finished hanging the wallpaper in the entry hallway. About a week after their return, Harry noticed that the wallpaper did not appear to be precisely the same as he had remembered. He asked Carl about the wallpaper and Carl pulled out the sample book so that they could determine whether the correct wallpaper was installed. The wallpaper sample in the book in fact did not exactly match the wallpaper Carl had hung. The paper on the walls had a faint blue vertical stripe that was not on the sample. Upon further investigation, Carl and Harry discovered the following in small print on the cover of the book, "The samples and order numbers in this book are valid until January 1, 1994." Harry called the National Wallpaper Co. and discovered that the wallpaper he selected is now listed as "No. 38 blue flower." The wallpaper with the stripe is now designated "No. 37 blue flower." Upon discovering the error, Harry demanded that Carl remove the entry hallway wallpaper and replace it with the correct paper. When Carl refused, Harry demanded that he leave and told him that he would not allow him to finish the job and would not pay him anything further. Carl gathered his materials and tools and left without saying anything further. Harry has had estimates of the amount required to complete the work called for by the contract. He can have the work on the kitchen and bathrooms completed for a total of $17,000. Replacing the wallpaper in the hallway will cost an additional $5,000. In addition, Harry had to pay $500 to rent a hall for his son's graduation party. Carl too has been tallying up his losses on this deal. Carl expected the entire job to cost him a total of $15,000 of which he has incurred $3,000 in expenses. Carl is particularly unhappy about the way things have turned out because after he signed the agreement with the Homeowners he was offered another job that would have resulted in profit of $7,500. Carl had to turn this more lucrative job down because he was committed to completing the work for the Homeowners. After the Homeowner job fell through, Carl decided to take a two week vacation and therefore earned nothing until sometime after May 1. Carl and the Homeowners have filed suits against one another. Evaluate their respective claims and the remedies to which you think they may be entitled.