Pursuant to a written contract at a price of $25,000.00 on Day 1, Jenny designs a warehouse
Question:
Pursuant to a written contract at a price of $25,000.00 on Day 1, Jenny designs a warehouse space in downtown Brooklyn on a tight timeframe of two (2) weeks for Carolina to use as an upscale speak-easy, with payment to be made once approval of the design is given by Carolina. The contract contains a clause that Carolina must be fully satisfied with the design before she is required to pay for it. After working, non-stop, for two (2) weeks on the design, Jenny submits the design plan to Carolina. Carolina tells Jenny on Day 14 that she is satisfied with the design and will move forward due to the tight construction timeline. She instructs her architects to go ahead and move forward with the design construction. Carolina does not, however, pay Jenny. When Jenny asks to be paid, Carolina tells her she wants to see how construction goes and will pay her $10,000.00 now and $15,000.00 when construction is complete in thirteen (13) months. Jenny is furious and demands full payment now. Trying to avoid a problem, Carolina sends Jenny a check for $21,000.00 and Carolina writes in “full payment of the debt” related to the design of warehouse space for speak-easy. Jenny signs the back of the check to endorse it and cashes the check.
A Jenny then sues Carolina in the Brooklyn Supreme Court for the remaining $110,000. Is this the correct forum for the case? Why or why not?
B In Jenny’s suit against Carolina, and assuming she is in the right court, judgment for whom?
C Jenny then sues for the remaining $4,000.00 Judgement for whom?
D Could Jenny have done anything differently here to protect herself if necessary and did she need to do so?
E Did an accord and satisfaction occur? Explain fully using at least one real court case we studied in class. When, if at all, would accord and satisfaction apply?
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts