For each scenario, do the following (and type your response in (a) (b) (c) format):
(a) state which law (UCC Article 2 or Common Law) applies to the scenario;
(b) define and apply the 4 elements of contract formation to determine whether or not the parties formed a contract;
(c) state the contract terms if you decide the parties formed a contract. If you decide the parties did not form a contract, state “No contract formed.”
SCENARIO 2 Cal Carpenter designs and installs custom kitchens, designing the remodel from start to finish. Lee wants a new kitchen and interviews Cal for the job.
Lee: I want everything to go, down to the frame. The new cabinets and new counters must be measured to fit my height requirements (Lee is 6’2” and tired of low counters), and new appliances installed. You select the best appliances you can find as this is the last house I will ever own, and it needs to fit me like a glove. And I want the best appliances for once in my life...no more bargain stuff.
Cal: I have taken measurements and am familiar with the cost of the best appliances on the market. Here’s what I can do: Appliances will cost $34,000, materials $6,000, and my design and labor $30,000. I can start the project in 5 weeks; this is my busy season.
Lee: I need work to begin immediately as my son is getting married at home in 4 weeks. The remodel must be completed by then.
Cal: To meet your deadline, I’ll need my assistant, so total labor will cost $45,000. (Hint: When a contract is a mixed (goods and services, aka ‘hybrid’) contract, the cost of the goods versus the cost of the services is not the sole factor used to determine which predominates, goods or services.
Remember: if goods predominate a hybrid or mixed contract, then Article 2 of the UCC applies. If services are the predominant reason for the contract, then the common law of contracts applies).