ON MAY 1 Owner is about to leave on a two-week vacation. Owner calls Painter and
Question:
ON MAY 1 Owner is about to leave on a two-week vacation. Owner calls Painter and offers to pay him $5,000 to paint the exterior of Owner's home. Owner says the job will also require scraping off some of the older paint. Painter says he is not sure he can do it for that price. Owner says, "Well, think about it. You can decide while I'm on vacation. If you agree, just go ahead and GET STARTED." Owner then departs on vacation.
ON MAY 2 Painter goes to Owner's house and spends six hours scraping paint. Painter realizes the job will be much more work than he expected and that he will need to be paid more than $5,000 for the work. Painter stops working on Owner's job and leaves.
ON MAY 3: Painter is offered a different job that will take a month to complete and pays much more than Owner's job. Painter emails Owner that he has decided not to do Owner's job. Owner receives and reads Painter's email.
ON MAY 15: Owner returns home. Owner discovers that she cannot hire anyone else to paint her house for less than $8,500. Owner demands that Painter finish the work.
Painter refuses. Owner hires another company to paint her house for $8.500. Owner sues Painter for the additional $3,500 that the painting costs her.
A. Explain Owner's best argument in support of her claim that a contract WAS formed between her and Painter.
B. Explain Painter's best argument in support of his claim that a contract WAS NOT formed between him and Owner.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill