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Fred contracts with Handyman Negri to build a backyard studio house. The specifi

ID: 355623 • Letter: F

Question

Fred contracts with Handyman Negri to build a backyard studio house. The specifications include a complete kitchen, a bilt-in miniature electric trolley set, a buit-in flat screen tv, and a swing chair on the front porch. Handyman Negri completes everything except installing the flat screen TV. Assuming Handyman Negnis failure to install the flat screen TV was not intentional, what is going to be the outcome under the doctrine of substantial performance: O Since Handyman Negri has performed substantially all of the terms o the contract. Fred will be required to pay or the work, although Fred can recover or Handyman Negn's failure to install the TV and any other minor omission, variance, or defect in performance O Since Handyman Negris performance does not vary greatly from the performance promised in the contract, and since it creates substantially the same benefits as those promised in the contract, Fred is going to have to pay Handyman Negri the full contract price for the work. Fred will then have to find another way to pay for the additional work that needs to be done O Since Handyman Negri has not completed performance, Fred does not have to accept the work. Since Handyman Negri has not completed performance, Fred's obligation to perform (i.e., to pay) has not yet been triggered. Only after Handyman Negri has performed exactly as agreed will Fred be required to pay under the doctrine of substantial performance QUESTION 14 been in a business relationship for over three years, they have never personally met. Instead, they conduct all their business via email. Lately, however, Sid is starting to reconsider his exclusive marketing contract with Nancy: he feels she is not working as hard as she could to market his product. He is approached by Johnny, who promises to triple Sid's business in three months. Sid likes the idea and sends Nancy an email to notify her that he's going to start using Johnny as his exclusive marketer. Nancy responds that they have a contract, and only she can market his products. Sid says they don't have a contract. He only typed his name on the electronic document:, he never actually signed anything with a pen. Given that Sid only typed his name on the electronic version of the contract, is there a contract between Sid and Nancy? lectronic Transaction Act nce Nancy doesnt avea signature Yes. However, S d is correct when he says that he never signed it since he Uniform will not be able to enforce the contract against him. A doesn't ap / ? ies as e se O No. Unless a party actually signs a document with a pen and ink signature, a legal contract cannot be created No. While an electronic signature can be created that is the legal equivalent to a pen-and-ink signature, a special electronic program is required, and neither Sid nor Nancy used that program O Yes. The Uniform Electronic Transaction Act (UETA) gives the same legal effect to electronic records and signatures as is given to paper documents and signatures. When Sid typed his name onto the contract, he demonstrated his intent to sign the contract and that's the same as if he had used an ink pen.

Explanation / Answer

13

Since Handyman Negri's has performed substantially all of the terms of the contract. Fred will be required to pay for the work, although Fred can recover for Handyman Negri's failure to install the TV and any other minor omission, variance, or defect in performance.

14

Yes, the Uniform Electronic Transaction Act (UETA) gives the same legal effect to electronic records and signatures as is given to paper documents and signatures. When Sid typed his name onto the contract, he demonstrated his intent to sign the contract and thats the same as is he had used an ink pen.

15.

Consequential (or Special) damages

16.

it is likely that Arthur has accepted the goods because he has had a reasonable time to inspect the shrubs, and he has failed to reject them.

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