Contracts Case Study After his accident, Fred is treated at General Hospital. Dr. Ruth came into his hospital room and told him that she was covering for Fred’s personal doctor who was out of town. Dr. Ruth then said “let me take your pulse” so Fred rolled up his sleeve. Dr. Ruth then came by every day while Fred was in the hospital, examining him and writing treatment orders. When Fred is discharged, he got a bill from Dr. Ruth for $10,000 for the treatment she provided while Fred was in the hospital. Before he was discharged from the hospital, he realized that he would need a wheelchair ramp at his house so he called Rob’s Reliable Ramps. They agreed that Rob would build a ramp for $2500 and have it done by time Fred was discharged. When he got home, there was no ramp. He called Rob’s Reliable Ramps and Rob told him that he hadn’t built the ramp because he didn’t know when Fred was being discharged. Because Rob’s Reliable Ramps couldn’t build the ramp immediately, he called Bill and Ted’s Excellent Concrete Service who, because of the need for a rush job, charged him $3000. Assume that Fred is not covered by insurance, none of his lawsuits paid off, and he has plenty of cash. Does Fred have a valid contract with Dr. Ruth? Assuming that Fred has a contract with Rob’s Reliable Ramps, did Rob’s perform under the contract? Assuming that Rob’s did not perform under its contract with Fred, what type of remedies and what dollar amount are appropriate? (Show how you calculated these damages). Rules: Formation: Every valid contract is based on legal capacity of the parties, legal purpose, offer, acceptance, and legal consideration Performance: The parties to a valid contract are require to perform as stated under the contract unless there is an unmet condition or there is a valid defense to performance
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