Essay Questions
Suggestion: Fifteen points total, five for each question. Give three points if one-half of one question is correct. Insist that the CRL be stated ("controlling rule of law")..
Ace Construction contracted with Dubious to remodel Dubious' auto showroom. Ace ordered windows from Windows Co. for a total of $6000. A few weeks later, before delivery was due, Windows Co. contacted Ace and stated that there was an unexpected price increase from its supplier; Windows Co. requested that Ace pay an increased price of $6600 for the windows. Ace agreed and the parties confirmed the conversation with a signed memo. After the windows were delivered, however, Ace determined it wouldn't pay more than the original $6000.
Dubious wrote to the Bulgemobile Company, "The hot thing is electric cars. For the 2017 season I'll order Bulgemobile Electrics in such numbers as I want at $43,000 each." In the first quarter of '17, Dubious ordered and sold three Electrics each month, and could have sold more. In late March Bulgemobile notified Dubious that no more deliveries would be made.
Dubious perceived that if he could purchase the lot next door to his existing car lot, he would have more room for his used cars. On April 1 he telephoned Owner. She said: "Yes, I will sell you the lot for $85,000. You can have two weeks to think about it." Dubious responded: "That's a lot of money. I'll pay you $80,000." On April 6th Owner mailed a letter to Dubious that read: "I changed my mind. What with the price of land around here, I want $95,000 for the lot." The letter arrived at Dubious' place on the 8th; however, on the 7th Dubious--he'd changed his mind, too--had mailed a letter to Owner accepting the deal at $85,000.
Alice Ace by written contract hired a specialty contractor, Trusses Inc., to "provide all labor and materials, tools, scaffolding and things necessary for erection of the trusses, and to execute the plans according to their specifics" for Dubious' building. Trusses' crew erected 38 of the trusses, stopped work for the day and, overnight, 12 of them fell off the building. The next morning Ace told Trusses' boss to remove the fallen trusses, disassemble, inspect, rebuild, and re-erect them. This was done. Trusses was paid by Ace all the sums owed under their written contract, together with all charges for extra work except for the costs incurred in connection with the fallen trusses.
Meanwhile, Carpenter, one of Ace's best finish carpenters, announced his intention to move to a distant city. At his going-away party, Ms Ace stated that in appreciation for Carpenter's ten years of good work she was going to pay and mail to him a severance bonus of $250 a month for the next year. Carpenter thanked his boss and after the party called up his wife and told her they could afford the $100-a-month-more-expensive apartment they'd looked at in the new city; the Carpenters then signed a lease for that apartment. Ms Ace paid the $250 for two months, and then stopped.
-a) Is Ace bound to pay Trusses the costs incurred in connection with the fallen trusses? Yes or no and explain.
b) Is Ace bound to pay Carpenter the $150 per month? Yes or no and explain.

Question

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The Answer of Essay Questions
Suggestion: Fifteen points total, five for each question. Give three points if one-half of one question is correct. Insist that the CRL be stated ("controlling rule of law")..
Ace Construction contracted with Dubious to remodel Dubious' auto showroom. Ace ordered windows from Windows Co. for a total of $6000. A few weeks later, before delivery was due, Windows Co. contacted Ace and stated that there was an unexpected price increase from its supplier; Windows Co. requested that Ace pay an increased price of $6600 for the windows. Ace agreed and the parties confirmed the conversation with a signed memo. After the windows were delivered, however, Ace determined it wouldn't pay more than the original $6000.
Dubious wrote to the Bulgemobile Company, "The hot thing is electric cars. For the 2017 season I'll order Bulgemobile Electrics in such numbers as I want at $43,000 each." In the first quarter of '17, Dubious ordered and sold three Electrics each month, and could have sold more. In late March Bulgemobile notified Dubious that no more deliveries would be made.
Dubious perceived that if he could purchase the lot next door to his existing car lot, he would have more room for his used cars. On April 1 he telephoned Owner. She said: "Yes, I will sell you the lot for $85,000. You can have two weeks to think about it." Dubious responded: "That's a lot of money. I'll pay you $80,000." On April 6th Owner mailed a letter to Dubious that read: "I changed my mind. What with the price of land around here, I want $95,000 for the lot." The letter arrived at Dubious' place on the 8th; however, on the 7th Dubious--he'd changed his mind, too--had mailed a letter to Owner accepting the deal at $85,000.
Alice Ace by written contract hired a specialty contractor, Trusses Inc., to "provide all labor and materials, tools, scaffolding and things necessary for erection of the trusses, and to execute the plans according to their specifics" for Dubious' building. Trusses' crew erected 38 of the trusses, stopped work for the day and, overnight, 12 of them fell off the building. The next morning Ace told Trusses' boss to remove the fallen trusses, disassemble, inspect, rebuild, and re-erect them. This was done. Trusses was paid by Ace all the sums owed under their written contract, together with all charges for extra work except for the costs incurred in connection with the fallen trusses.
Meanwhile, Carpenter, one of Ace's best finish carpenters, announced his intention to move to a distant city. At his going-away party, Ms Ace stated that in appreciation for Carpenter's ten years of good work she was going to pay and mail to him a severance bonus of $250 a month for the next year. Carpenter thanked his boss and after the party called up his wife and told her they could afford the $100-a-month-more-expensive apartment they'd looked at in the new city; the Carpenters then signed a lease for that apartment. Ms Ace paid the $250 for two months, and then stopped.
-a) Is Ace bound to pay Trusses the costs incurred in connection with the fallen trusses? Yes or no and explain.
b) Is Ace bound to pay Carpenter the $150 per month? Yes or no and explain.

Essay Questions Suggestion: Fifteen Points Total, Five for Each Question. Give Three