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Case Analysis Using IRAC

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Bob was receiving an award in two weeks and wanted a new suit. Bob went to his tailor, Ned, to see if he could get a suit made in time for the award ceremony. Ned took Bob's measurements. Bob then picked out a black fine wool fabric. Ned told Bob that the fabric was out of stock, but he would try to locate enough for the suit.

Ned explained that if he finds the fabric, the suit will cost $1,000.00. Bob thought that was high, but said, "Let me know in two days. If not I will have to find a suit somewhere else."

The next day, Ned found the fabric and immediately sent an email to Bob:

Dear Bob:

I found the fabric. I will start work on your suit immediately. I should be done in four days. The price will be $1,000. I will call you when you can pick it up.


Bob got the email and read it. He was going to call Ned and tell him the suit was too expensive, but he could not find Ned's business card he picked up so, he didn't have the phone number. Bob then forgot about the email until Ned called informing him that the suit was ready. Bob told Ned he didn't want the suit and then hung up.

Can Ned sue Bob for the breach of contract?

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Issue-The primary issue in this case, is whether or not there was a breach of contract by Bob, when Bob failed to pay for and pick up a suit that was tailor-made for him by Ned. In addition, is Bob liable to Ned, when Ned did not use the agreed-upon method by which to contact Bob in reference to purchasing the suit for the agreed-upon price of $1000.

Rules-The express terms of a contract can be defined as the terms that are either verbally expressed during the negotiations process, or written into a ...

Solution Summary

A case analysis using IRAC is provided.

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Apply IRAC for personal use.

Art and Betty are neighbors and live in an agricultural area. Art just recently had built a new red barn. In late January 2004, Betty asked Art on what terms he would build a barn on her property. Art said that because he had never built a barn for hire, he would charge Betty only $100 per square foot, about $10 more than his expected cost. Art said that he would build a barn 50' by 50'. Betty said, "OK, if you guarantee January 1, 2005 completion." Art agreed and asked for $10,500 in advance to purchase supplies, with any additional further payment made on completion. Betty said, "OK," and paid Art $10,500.

On March 10, 2004, Art started to purchase the lumber and found out that the price had increased 150% from the date of his original bid to Betty. On March 12, 2004, he notified Betty that he could not afford to build the barn for the agreed price. He said he would have to charge $30.00 more per square foot because of the increase in lumber prices. Betty orally agreed to the price increase.

On May 1, 2004, Art notified Betty that he would not build the barn because he had just contracted to sell his farm to Ted and would be moving out of the area. Betty then contacted her uncle John, explained her circumstances with Art and asked John if he would build the barn on the same terms as she agreed with Art. John said that since Betty was his favorite niece, he would build the barn for her at no charge. Betty thanked John for his generosity and accepted. Betty was able to stop looking for someone to build the barn. John died before he started work on the barn.

Betty, annoyed by Art's failure, sued Art seeking to recover her $10,500, plus damages. Further, Betty is seeking damages from John's estate for John's failure to build the barn.

In her suit against Art, what are Betty's rights and what damages, if any, and will she recover? Discuss.
In her suit against John's estate, what are Betty's rights and what damages, if any, and will she recover? Discuss.

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