Business Law and the Legal Environment 7th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 1

Judith and John Brooks hired Wayne Hayes to build a house. The contract required Hayes to "provide all necessary labor and materials and perform all work of every nature whatsoever to be done in the erection of the residence." Hayes hired subcontractors to do all of the work. One of Hayes's employees checked on the work site daily, but neither Hayes nor any of his employees actively supervised the building. The Brookses were aware of this working arrangement and consented to it. The mason negligently installed the fireplace, ultimately leading to a serious fire. The Brookses sued Hayes for breach of contract. Hayes contended that, when the Brookses approved of his hiring of subcontractors to do all work, that created a novation relieving him of any liability. Discuss.