HWK 9 - olivia faye
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School
California Polytechnic State University, Pomona *
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Course
4050
Subject
Law
Date
Jan 9, 2024
Type
docx
Pages
3
Uploaded by ElderScience11534
Questions:
1.
Think about the various terms you might need in an engineering
contract. What do you think would be the five most important
basic terms of a contract and why would you think so?
Scope of work, payment, termination, time frame, dispute
resolution
2.
American courts do not punish people for breaking contracts,
even when they do it on purpose. They may impose damages,
but not punitive damages on top of that. Do you agree with
that? Why or why not?
I agree that American courts do not punish people for breaking
contracts, even on purpose. I believe this is because both parties
enter the contract willingly, understanding the terms of the
contract. In some cases I feel punitive damages would be justifies
say one party breach contract but within that breach the cause
irreparable harm to the other parties reputation. Where
compensatory damages may be difficult to quantify. Though in
most cases a breach of contract does not qualify for a tort action
like committing an illegal activity. So compensatory damages
reimburse the party for failure to meet contract outlines. If one
was to be able to collect both compensatory damages and
punitive damages for basic breaches, it would be very difficult for
any party to want to sign a contract and would discourage
business from entering into them. Punitive damages
can be
difficult to justify in cases and awards are unpredictable and can
be substantially high, in cases where the breach of contract was
not intentional or malicious I don’t think they are necessary
Hypothetical:
Write an IRAC analysis of the following hypothetical. Be prepared to
discuss this hypothetical in class. Focus in particular on the wide
range of legal issues that this hypothetical poses (there are at least
eight or nine separate issues involved here, and possibly more!)
Art and Betty own adjoining farms in County, an area, where all
agriculture requires irrigation. Art bought a well-drilling rig and
drilled a 400-foot well from which he drew drinking water. Betty
needed no additional irrigation water, but in January 1985, she
asked Art on what terms he would drill a well near her house to
supply better tasting drinking water than the County water she has
been using for years. Art said that because he had never before
drilled a well for hire, he would charge Betty only $10 per foot,
about $1 more than his expected cost. Art said that he would drill to
a maximum depth of 600 feet, which is the deepest his rig could
reach. Betty said, “OK, if you guarantee June 1 completion.” Art
agreed and asked for $3500 in advance, with any additional further
payment or refund to be made on completion. Betty said, ” OK,” and
paid Art $3500.
Art started to drill on May 1. He had reached a depth of 200 feet on
May 10 when his drill struck rock and broke, plugging the hole. The
accident was unavoidable. It had cost Art $12 per foot to drill this
200 feet. Art said he would not charge Betty for drilling the useless
hole, but he would have to start a new well close by, and could not
promise its completion before July 1.
Betty, annoyed by Art’s failure, refused to let Art start another well
and on June 1, she contracted with Carlos to drill a well. Carlos
agreed to drill to a maximum depth of 350 feet for $4500, which
Betty also paid in advance, but Carlos could not start drilling until
October 1. He completed drilling and struck water at 300 feet on
October 30.
In July, Betty sued Art seeking to recover her $3500, plus the $4500
paid to Carlos.
On August 1, County’s dam failed, thus reducing the amount of
water available for irrigation. Betty lost her apple crop worth
$15,000. The loss could have been avoided by pumping from Betty’s
well if it had been operational by August 1. Betty amended her
complaint to add the $15,000 loss.
Issue. Did art breach contract by failing to dig well by allotted deadline
Rule:
A breach of contract occurs when one party fails to perform his or
her contractual obligations without a valid excuse. The performance
must be substantial, meaning that it must go to the essence of the
contract. A minor deviation from the terms of the contract does not
constitute a breach unless it affects the purpose or value of the
contract. A party may be excused from performance if there is an
impossibility, impracticability, or frustration of purpose that makes the
performance impossible, excessively burdensome, or pointless.
Application. Art did not complete the well by June 1 as the contract
stated. Arts failure is substantial and breaches the essence of the
contract. The essence of the conract was to provide Betty with a well
that contained drinkable water by a deadline set June 1st. Art did not
have a valid excuse for his failure, The accident was foreseeable and
avoidable. Art had opportunity to take precautions to prevent and it is
foreseeable while digging a up to 600’ well that obstacle may happen.
Furthermore,
Art did not offer any remedy the issue but stated he
would have to start over and extend the deadline by July 1st.
Conclusion. Art breached the contract. Art is responsible for any
damages caused to Betty due to his failure to dig a well by the time
permitted in the contract he stipulated
In her suit against Art, what are Betty’s rights and what damages, if
any, will she recover? Discuss.
Betty is entitled to a refund of her advance payment of $3500.Art
breached his contract with Betty by failing to complete the well by June
1. As well, recover the $4500 she paid to Carlos as Betty was forced to
hire Carlos to drill a well after Art failed to complete the well on time.
Furthermore, Betty's loss of apple crop was a foreseeable consequence
of Art's breach. Art is responsible for Betty's lost profits and liable for
damages of $15000 which is indirect damage due to loss of profit.
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