Engineer E and Owner O are engaged in contract negotiations for E to design and
ID: 1732605 • Letter: E
Question
Engineer E and Owner O are engaged in contract negotiations for E to design and build a building for O. The proposed contract is for $200,000. The estimated duration of the turnkey project is 15 months.After reaching an oral agreement of the above, O tells E that they should get together over the next few weeks to hammer out the contract language details for a formal written contract. E begins work without notifying O and completes approximately 30% of the design work (at a cost of $3000) when negotiations break off over "technicalities." When E indicates work has already begun, O orally tells E to stop work as they cannot reach an agreement. E's budget estimated a $12,000 profit for E for the project. Assume for this question that the design/build turnkey project is NOT severable.
1. E sues O for the entire $200,000. Who wins, what, and why? 2. ADDITIONAL FACTS: O mails a check for $3,000 to E with a letter stating that the check is "to cover your costs for the work performed under our canceled agreement for the $150,000 project." E sues O for the remaining $197,000. O countersues asking for the return of the $3,000. Who wins, what, and why? Engineer E and Owner O are engaged in contract negotiations for E to design and build a building for O. The proposed contract is for $200,000. The estimated duration of the turnkey project is 15 months.
After reaching an oral agreement of the above, O tells E that they should get together over the next few weeks to hammer out the contract language details for a formal written contract. E begins work without notifying O and completes approximately 30% of the design work (at a cost of $3000) when negotiations break off over "technicalities." When E indicates work has already begun, O orally tells E to stop work as they cannot reach an agreement. E's budget estimated a $12,000 profit for E for the project. Assume for this question that the design/build turnkey project is NOT severable.
1. E sues O for the entire $200,000. Who wins, what, and why? 2. ADDITIONAL FACTS: O mails a check for $3,000 to E with a letter stating that the check is "to cover your costs for the work performed under our canceled agreement for the $150,000 project." E sues O for the remaining $197,000. O countersues asking for the return of the $3,000. Who wins, what, and why? Engineer E and Owner O are engaged in contract negotiations for E to design and build a building for O. The proposed contract is for $200,000. The estimated duration of the turnkey project is 15 months.
After reaching an oral agreement of the above, O tells E that they should get together over the next few weeks to hammer out the contract language details for a formal written contract. E begins work without notifying O and completes approximately 30% of the design work (at a cost of $3000) when negotiations break off over "technicalities." When E indicates work has already begun, O orally tells E to stop work as they cannot reach an agreement. E's budget estimated a $12,000 profit for E for the project. Assume for this question that the design/build turnkey project is NOT severable.
1. E sues O for the entire $200,000. Who wins, what, and why? 2. ADDITIONAL FACTS: O mails a check for $3,000 to E with a letter stating that the check is "to cover your costs for the work performed under our canceled agreement for the $150,000 project." E sues O for the remaining $197,000. O countersues asking for the return of the $3,000. Who wins, what, and why?
Explanation / Answer
ANSWER:
GIVEN THAT
->since we all know, verbal commitment & promise do not grasp some bottom in rule of court. A lawful agreement/ conformity have to be in put in arrange to claim/inquire intended for any possessions. lawful agreement have to be sign equally by together the party on the decided point, only the clause decided in the accord will grasp high-quality & can be claim by law. In this case,
-> E & O occupied into a conversation/cooperation with no investment some agreement in put. future agreement be verbally decided at $2,00,000 while no lawful agreement was signed. Even though the term of the project was also communicated verbally. Prior toward the surrounded by keen on any accord E in progress operational on the project by himself & did not even notify O concerning it.
->position this when O realize it is not as per communicate he ask to stop the labor. E has by now invest in the scheme with no even captivating permission of O & present was no legal agreement in put to still maintain for that. If E sue O, then by above statement & by judges of law, O wins.
-> As affirmed obviously present was no on paper lawful contract inside put that form the foundation for this project. E do not hold any witness otherwise text which are satisfactory in commandment & therefore, O will win the case. Now in this container, as per the announcement O mail a letter the length of with a make sure of $3000, to wrap all the spending that has been made on the project & mentioned that the cost of cancelled agreement was for $ 150,000. position in receipt of a make sure of $3000, E sue O, for the residual quantity decided previous which is $197,000 (200,000 – 3000).
->Now O countersues E ask for go back of $3000. at what time E sue O for $197,000, absolutely E lose as present are rejection pertinent & behind papers/contract in put. at what time O countersues E for $3000, he have the behind doc mention the belongings concerning the agreement, he has misplaced $3000, by creation the defeat which has be incur by E, though the scheme be discarded as mechanics were mistaken. O will win the disagreement.
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