Although the ultimate goal of the parties in a contract is to discharge the obligations of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Although the ultimate goal of the parties in a contract is to discharge the obligations of the parties by performing as promised, a contract may also be discharged through substantial performance, mutual consent of the parties, or through operation of law. The law also imposes an affirmative duty of fair dealing and good faith in performing obligations, and this underlies all contract transactions. Read the case below and answer the questions that follow. Cold Case Storage (CCS) provides refrigerated storage facilities for food purveyors. CCS contracts with Igloo Builders Inc. (Igloo) to build five refrigerated warehouses. The contract called for type "A1A" brand insulation so that the warehouse would stay between 35 and 40 degrees with minimal energy. Igloo built the first four warehouses using the A1A insulation, but then ran short of supply. Igloo's construction manager did not want to miss the completion deadline because her bonus depended on timely completion. Therefore, she ordered her workers to substitute B1B insulation for the A1A insulation in the last warehouse. Upon inspection, CCS refused to pay for the final warehouse, citing expert evidence that, because the B1B insulation was not as efficient, the extra costs would total $1,000 (more during peak hot months) per month in cooling costs. If Igloo files a lawsuit to recover the funds owed for building the last warehouIse and CCS points out the B1B defect, what will Igloo's likely theory of the case be? Why? Although the ultimate goal of the parties in a contract is to discharge the obligations of the parties by performing as promised, a contract may also be discharged through substantial performance, mutual consent of the parties, or through operation of law. The law also imposes an affirmative duty of fair dealing and good faith in performing obligations, and this underlies all contract transactions. Read the case below and answer the questions that follow. Cold Case Storage (CCS) provides refrigerated storage facilities for food purveyors. CCS contracts with Igloo Builders Inc. (Igloo) to build five refrigerated warehouses. The contract called for type "A1A" brand insulation so that the warehouse would stay between 35 and 40 degrees with minimal energy. Igloo built the first four warehouses using the A1A insulation, but then ran short of supply. Igloo's construction manager did not want to miss the completion deadline because her bonus depended on timely completion. Therefore, she ordered her workers to substitute B1B insulation for the A1A insulation in the last warehouse. Upon inspection, CCS refused to pay for the final warehouse, citing expert evidence that, because the B1B insulation was not as efficient, the extra costs would total $1,000 (more during peak hot months) per month in cooling costs. If Igloo files a lawsuit to recover the funds owed for building the last warehouIse and CCS points out the B1B defect, what will Igloo's likely theory of the case be? Why?
Expert Answer:
Answer rating: 100% (QA)
according to the data Ans In the case presented the contract between CCS and Igloo had to be equal t... View the full answer
Related Book For
Information Technology for Management Digital Strategies for Insight Action and Sustainable Performa
ISBN: 978-1118994290
10th edition
Authors: Efraim Turban, Carol Pollard, Gregory Wood
Posted Date:
Students also viewed these business communication questions
-
Read the short case below and answer the questions that follow. A large asset management firm created a new mutual fund called the No Loss Fund in 2005. The firm began to market the fund looking for...
-
Read the following case and answer the questions that follow Employees involved in the accounting and control functions of organizations often face ethical dilemmas. Typically, at some point in each...
-
Read the case below and answer the questions given: Assume that you are an independent auditor who runs your own auditing firm. Majan Company was your client last year who engage another independent...
-
where a bank's liabilities can be withdrawn in the short-term while its assets are being repaid in the long-term.
-
Calculate the adjusted r 2 value (c). In a study of central city multiplex movie theaters, 15 theaters located in cities of similar size were selected. The theaters have the same number of screens...
-
Southwest Airlines prides itself on allowing passengers to check bags for free. Given that virtually all of Southwests competitors have started charging these extra fees, do you think they will...
-
What is the role of HR professionals in information security and privacy management?
-
Refer to the RadioShack Corporation, consolidated financial statements in Appendix B at the end of this book. Focus on the year ended December 31, 2010. 1. What is RadioShack Corporations main source...
-
Discuss the current most significant liquidity risk for the banking industry.
-
Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a 7-day, 6- night trip to Cancun and a 5-day, 4-night trip to Jamaica, have the following...
-
The acquisition / payment process: 1. Helps an organization create value for its stakeholders. 2. Can only be applied if an organization sells a product. 3. Both A and B. 4. Neither A nor B.
-
Explain how self-awareness impacts the communication process.
-
In three to five paragraphs, describe three triggers that could lead to emotional hijacking for you. For each trigger, explain one or two strategies you can use to calm down and communicate...
-
Describe and apply the components of the reviewing stage, including a FAIR test, proofreading, and feedback.
-
Robert W. Selander, former president and CEO of MasterCard, was asked, What are the most important leadership lessons you have learned? He responded by describing some of his international...
-
Use the story line approach to presentations.
-
Compute the overall MAD for the following data: Month 1 2 3 st 4 5 6 66.7 68.9 45.6 76.6 Actual demand 950 1070 1100 960 1090 1050 Forecasted Demand 1000 1000 1000 1000 1000 1000
-
Use the graphs of f and g to graph h(x) = (f + g) (x). To print an enlarged copy of the graph, go to MathGraphs.com. 1. 2. y 24 8. 2. -2 -2 4 6
-
Explain moral hazard. Give a fraud-related example.
-
Visit each of the following enterprise vendor websites. Write a brief report on the latest features of their enterprise systems, platforms, apps, or solutions. 1. SharePoint 2. Yammer 3. Oracle 4....
-
Why might a company have a legal duty to retain records? Give an example.
-
Enter the following transactions of an antiques shop in the accounts and extract a trial balance as at 31 March 2017. 2017 March 1 Started in business with 8,000 in the bank. 2 Bought goods on time...
-
Record the following details relating to a carpet retailer for the month of November 2017 and extract a trial balance as at 30 November 2017. 2017 Nov 1 Started in business with 15,000 in the bank. 3...
-
Record the following transactions for the month of January of a small finishing retailer, balance-off all the accounts, and then extract a trial balance as at 31 January 2016. 2016 Jan 1 Started in...
Study smarter with the SolutionInn App