Mr and Mrs Green want an extension on their house.

Question

Mr and Mrs Green want an extension on their house. They ask three local building firms to provide estimates. The cheapest is easybuild Ltd whose estimate is 8000. They ask easybuild to carry out the work and sign a contract with them. The contract does not mention the price payable or how long will the work take to complete. The workmen start in March but do not finish the job untill the following February. The greens are not happy with the work as the brick colour of the extension does not match closely to the house and soon after completion the flat roof of the extension leaks.

Answer 1

Mr and Mrs Green want an extension on their house. They ask three local building firms to provide estimates. The cheapest is easybuild Ltd whose estimate is 8000. They ask easybuild to carry out the work and sign a contract with them. The contract does not mention the price payable or how long will the work take to complete. The workmen start in March but do not finish the job until the following February. The greens are not happy with the work as the brick color of the extension does not match closely to the house and soon after completion the flat roof of the extension leaks.

Applicable Law

The contract of sales of goods is governed by UCC while all other contracts are governed by common law. This is a construction service contract. Therefore, the contract is governed by common law.

Offer

Under common law, the following definite and certain terms are required.

Quantity: One house

Time of performance: Not available

Involved: Mr. and Mrss Green and Easybuild

Price: Not available

Subject matter: House Extension

Acceptance

Under common law, there is a mirror rule. When Easybuild gives the estimate of $8,000, Green accepts the same term on the price of $8,000 even though the contract did not list the price. If the time of performance is not stated, a reasonable time will be applied. If Easybuild completes the extension in 11 months, it is reasonable because a house extension is a major construction in the building industry.

Formation of Contract

There is a valid contract with a valid offer, acceptance, and without defense.

Statute of Fraud

This contract falls under the category of land interests. The contract is in signed writing and signed by the party charged, Green. Therefore, it falls under the Statute of Fraud and the contract is enforceable.

Additional Term - mismatch brick color

The brick color is not a term listed on the contract. Therefore, Green will not be able to enforce the brick color because the brick color is not a term listed on the signed written contract.

Special Performance - Extension's Flat Roof leaks

An implied warranty is presumed regarding real property. Implied warranties occur in every construction project whether there is a written contract or not. Green is entitled to request a special performance until Easybuild delivers a fully functional extension without defects such as leaks.