LAW Using the IRAC method 5. Jim enters into a contract with BIGSHEDS to build a
ID: 416040 • Letter: L
Question
LAW
Using the IRAC method
5. Jim enters into a contract with BIGSHEDS to build a shed in his backyard for $20,000. BIGSHEDS finish building the shed however there are defects. The roller doors do not work and the gutters and downpipes leak water. Jim is refusing to pay BIGSHEDS the $20,000, as they have not completed the contract exactly as required. Jim has to pay SHEDS R US $3,000 to fix the defects. Advise Jim if he has to pay the $20,000 to BIGSHEDS. Explain your answer with reference to relevant cases.
6. Raj owns a beautiful and large property in the Yarra Valley. Sumit loves Raj’s property and he said to Raj, “If you sold the property, how much would you want for it?” Raj replied, “Well, you know I love my property, so for me to part with it, it would be $2,000,000.” Sumit says, “It’s a deal. I accept your offer.” Advise Sumit whether he has an enforceable agreement with Raj. Use relevant cases to support your answer.
Explanation / Answer
Jim enters into a contract with BIGSHEDS to build a shed in his backyard for $20,000. BIGSHEDS finish building the shed however there are defects. The roller doors do not work and the gutters and downpipes leak water. Jim is refusing to pay BIGSHEDS the $20,000, as they have not completed the contract exactly as required. Jim has to pay SHEDS R US $3,000 to fix the defects. Advise Jim if he has to pay the $20,000 to BIGSHEDS. Explain your answer with reference to relevant cases.
The IRAC method is simply a technique to answer a question in four steps:
As per the contract law, if two parties have mutually agreed upon certain terms and conditions and if any of the party in the contract fails to perform their obligations, then the victim party can either cancel the contract or seek remedies for its loss.
In this case it is very clear that Jim would pay $20000 to BIGSHED company for constructing a shed in his backyard. This means the shed must be made by the company must be in working condition which is not so. There are issues in the shed. The roller doors did not work and the gutters and downpipes leaked water because of which Jim had to pay $3000 to SHEDS R US to get them fixed.
Legally, as per the contract Jim could have filed for remedies from BIGSHEDS for not fulfilling the contract conditions properly. But JIM did not bring the defects into the notice of BIGSHEDS and did not file any suit. BIGSHEDS is not legally bind to pay for the extra amount used in fixing the defects. However, if JIM may have filed the suit, BIGSHEDS must perform the repairs.
Therefore, JIM must pay $20000 to BIGSHEDS.
(A similar case to this is Merritt V Merritt (1970). In this case the husband was ordered by the court to perform his obligations).
note: as per chegg policy only one question can be answered at one time.
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