Ronald Smith owns a home at 7890 Brookfield Lane, Chicago, Illinois. The garage in the back of, the house is beginning to fall down so he decides to build a modern two-car garage in its place. He calls Garages R Us for a free estimate on a new garage. Sam "the Salesman" Jones comes out and shows Mr. Smith the various styles of buildings and the costs involved. In addition to the pictures, Mr. Jones tells Mr. Smith that once they tear down the old garage, they put a 1/4" layer of gravel down. They then lay 10 steel rods widthwise and 4 steel rods lengthwise on top of the gravel. Only when that is done do they start pouring the concrete. The extra gravel and rods (which are not done by every company) are designed to give additional strength to the floor so that there will never be a problem with it being able to hold 2 automobiles at one time. Sam shows him some diagrams of what he is talking about. Ronald is impressed and chooses the garage he likes best. Sam then asks how he intends to pay for the work. When Ronald tells him that he was going to go to a bank to get a loan, Sam tells him about the financing options they have through Garages R Us. Ronald likes the terms and signs a contract for the building of the garage (which does not contain any information about the gravel or the rods and does not contain any pictures as he had been shown) subject to the approval of the financing. After the financing is approved, Garages R Us assigns their rights to payment from Ronald to the Bedford Park Savings and Loan Association. Notice is sent to Ronald of the assignment.

The workmen tear down the original garage and start to construct the new one. Ronald, who is retired, watches out of his back window every day as they work: As they begin to lay down the gravel and rods, he notices that they are not doing what he had been told they would do. They have scattered some gravel across the ground, but in no way is it 1/4" thick. They have spread some rods across the ground, but there are 4 across widthwise and 2 across lengthwise. Ronald immediately rails Sam and begins to complain. Before Sam can get out to the house to talk to Ronald, the workers poured the concrete and it set. Ronald wants the concrete broken up so that he can show Sam what is underneath. Sam tells him that if they do that, Ronald will be

responsible for the cost of laying down new concrete. They get into a shouting match, Ronald tells the workers to stop work and Sam leaves. After one month goes by, the Bank calls Ronald to find out where the first month's payment is. Ronald tells the Bank that he is not going to pay for work that wasn't completed and wasn't done right, to begin with. The Bank and wants to sue Ronald. Ronald wants to sue Garages R Us.

In your opinion do any of them have a good cause of action to sue anyone. If sued, does anyone have any defenses? In addition to the elements of a contract, you may wish to discuss breach, material breach, assignment, preventing performance, parole evidence, and misrepresentation.

Answer rating: 100% (QA)

BREACH OF CONTRACT A DICUSSION Problem is unique one in which one party Smith make a contract with SAM to do some construction work But construction i... View the full answer