BLAW 2911: Commercial Law 1
TRU Open Learning
Assignment 1 Scenario
Bob and Linda are ma
ied. They own and operate a hamburger restaurant in
Vancouver. Bob recently hired a contractor to renovate the restaurant. Bob and the
contractor discussed the terms of the contract, but unfortunately nothing was ever
put into writing. The renovation went very badly, and Bob has decided not to pay
the contractor any money. The contractor threatened to sue Bob and Linda for
payment of the agreed upon contract price. The contract itself called for the
installation of a new hardwood floor; however, the contractor installed an inferior
laminate floor. When asked why he deviated from the terms of the contract, the
contractor explained that he had thought the hardwood floor product identified in
the contract would be available; however, he later found out it had been
discontinued, so he installed the laminate flooring product. In addition to the
laminate issue, the contractor installed the floor improperly so Bob is going to have
to hire another contractor to fix the many mistakes that were made.
Using your knowledge of contracts and dispute resolution, analyze the facts and
provide your opinion to Bob and Linda on their legal position and how they may
est go about resolving their legal issues.
Assignment 1: Contracts and Dispute Resolution - Spot the Issue(s)
Spot the Issue Assignments
A spot the issues question presents you with a
ief scenario and asks you to identify any legal issues as well as provide your opinion on how the legal issue may be resolved.
Use the IRAC formula to work through the scenario. The IRAC formula presents a structured way for you to organize your thinking and your answer to spot the issue(s) questions.
The IRAC Formula
The method you will use to answer spot the issue(s) questions in this course is known as the IRAC formula. The IRAC formula presents a structured way for you to organize your thinking and your answer. The formula contains the following steps:
Set out your assignments under the following headings:
Facts
Bullet points are all we are looking for here. Do not include any conclusions in your facts. This section simply requires you to pick out the main facts from the question and re-state them.
Issues
With respect to issues, I recommend that you frame these as questions. For example if the assignment was a case about a potential
each of fiduciary duty (I'm not saying any of the assignments are, this is just an example to illustrate) you would say something like:
1. Did the defendant owe the plaintiff a fiduciary duty?
a. Was the defendant uniquely vulnerable to the plaintiff's unilateral exercise of discretion?
2. Did the defendant
each his/her fiduciary duty?
a. Did the defendant exercise his/her discretion in such a way as to cause loss to the plaintiff?
3. What remedy, if any, is the plaintiff entitled to?
a. Is the plaintiff entitled to an injunction?
. Is the plaintiff entitled to damages?
i. If "yes", how are the damages calculated?
Then repeat each one of these questions, and answer each one, in the analysis section.
Rule
For the rule section - you should not write full sentences, and you should not explain or apply the rule here. Write this section out in bullet points, or a numbered list - not full sentences.
Start with the
oadest legal rule that applies (1) and then na
ow down to all the su
ules that apply (a, b, c) to that
oad rule (1) that you will have to consider. Repeat for additional legal rules, if necessary.
Here's the kicker: if you don't identify all the right issues or the right rules, you cannot possibly get full marks on the analysis section.
Analysis
In this section you should use headings that match your numbered issues. Apply the rules you have identified in the rules section (don't
ing up new ones here!) to the relevant facts stated in your facts section to answer the questions you have set out as issues in your issues section.
This section requires full sentences and should form the majority of your assignment. This is where you explain how the rule (or law) works in this particular situation.
Conclusion
Write a
ief recap that summarizes your answers in the analysis section. Don't raise or answer new issues here! This section should also be written in full sentences.
The IRAC formula is used in the grading ru
ic for all of the “spot the issue(s)” assignments.
Instructions
1. Read the attached case scenario carefully.
2. Once you have read the scenario, use your knowledge of contracts and dispute resolution to analyze the facts and provide your opinion to Bob and Linda on their legal position and how they may best go about resolving their legal issues.
3. Your answer should be approximately 750 to 1,000 words in length. Use 12-point, Times New Roman font.
4. Make sure you thoroughly address all of the steps in the IRAC formula providing complete explanations for each issue.
Writing Guidelines
Use legal referencing when citing any material from the course readings (this includes both paraphrasing and direct quotes). Use the following online guides to format your citations to the McGill Guide: The Canadian Guide to Uniform Legal Citation style:
· University of Toronto (Bora Laskin Law Li
ary) Legal Citation
· Queen’s University Legal Citation
Thompson Rivers University
Te
ance P Power
BLAW 2911_SW4 - Commercial Law (Winter 2019)
Jessica Giancola
T XXXXXXXXXX
Assignment 1: Contracts and Dispute Resolution
05-FEB-2020
Facts:
Bob and Linda own and operate a hamburger restaurant in Vancouver.
Bob hired a contractor to renovate the restaurant.
Bob and the contractor discussed the terms and conditions of the contract, but nothing was ever put into writing.
The renovation went badly, and Bob decided not to pay the contractor any money.
The contractor threatened to sue Bob, and Linda for payment of the agreed-upon contract price.
The contract called for the installation of a new hardwood floor.
The contract installed an inferior laminate floor, as the hardwood floor product had been discontinued.
The laminate flooring was installed improperly.
Bob is left having to hire another contractor to repair the damage.
Issue:
Does an enforceable contract exist?
Rules:
Elements of a contract are defined in Dorothy DuPlessis, Shannon O’Byrne, Philip King, Lo
ie Adams, Steven Enman, Canadian Business and The Law, 6th ed., Loose Leaf Edition: ISBN-13: XXXXXXXXXX, ISBN-10: XXXXXXXXXX, (Nelson Education, 2017), at p 97-98:
An Agreement. An agreement is composed of an offer to enter into.a contract and an acceptance of that offer… The informing idea behind a contract is that there has been a “meeting of the minds” - that the parties have agreed on what their essential obligations are to each other.
Complete. The agreement must be complete, that is, certain.
Deliberate. The agreement must be deliberate, that is, both parties must want to enter into a contractual relationship.
Voluntary. The agreement must be freely chosen and not involve coercion or other forms of serious unfairness…
Between two or more competent persons. Those who enter a contract are known as parties to the contract. There must be at least two parties to any contract, who must have legal capacity…As a general rule, only parties to a contract can sue and be sued on it…
Supported by mutual consideration. A contract involves a bargain or exchange between the parties. This means that each party must give something of value in exchange for receiving something of value from the other party. Expressed in legal terminology, a contract must be supported by mutual consideration…
Not necessarily in writing. As a general rule, even oral contracts are enforceable, though it is preferable for negotiators to get the contract in writing. That said, most Canadian jurisdictions there are certain kinds of contracts-such as those involving an interest in land-that must be in writing in order to be enforceable.
Analysis:
The offer extended to the contractor by Bob and Linda was monetary payment in exchange for installing a hardwood floor for their restaurant.
The acceptance of that offer was received by the contractor. This is evident because of actions taken in an attempt to fulfill the contract.
Monetary consideration was agreed upon, post completion of the work done by the contractor as stated in the offer and acceptance.
There is no reason to believe that the contractor was not capable of understanding the terms and conditions of the contract. They have chosen to work in this field and are having to make these types of agreements regularly.
The contractor has the option to reject Bob and Lindas offer, therefore he was able to freely accept the contract and its entirety.
The contract in question does include any terms and conditions that would go against any laws.
Issue:
Has a
each of contract occu
ed?
Rules:
Dorothy DuPlessis, Shannon O’Byrne, Philip King, Lo
ie Adams, Steven Enman, Canadian Business and The Law, 6th ed., Loose Leaf Edition: ISBN-13: XXXXXXXXXX, ISBN-10: XXXXXXXXXX, (Nelson Education, 2017), at p 204,
Condition is an important term in the contract that if
eached, gives the innocent party not only the right to sue for damages but also to treat the contract as ended. This Katter right means that, if she chooses, the non-defaulting party can consider herself to be freed from the balance of the contract and to have no further obligations under it.
Expressed term is defined in Dorothy DuPlessis, Shannon O’Byrne, Philip King, Lo
ie Adams, Steven Enman, Canadian Business and The Law, 6th ed., Loose Leaf Edition: ISBN-13: XXXXXXXXXX, ISBN-10: XXXXXXXXXX, (Nelson Education, 2017), at p 141:
An expressed term is a provision of the contract that states or makes explicit one party promise to another.
Implied term is defined in Dorothy DuPlessis, Shannon O’Byrne, Philip King, Lo
ie Adams, Steven Enman, Canadian Business and The Law, 6th ed., Loose Leaf Edition: ISBN-13: XXXXXXXXXX, ISBN-10: XXXXXXXXXX, (Nelson Education, 2017), at p 143:
A provision that is not expressly included in the contract but that is necessary to give effect to the parties intention.
Analysis:
An important expressed condition of the contract was the contractor is to install a hardwood floor. He
eached this condition by installing an inferior laminate floor.
An implied condition was that the contractor would complete all work co
ectly. Bob and Linda will have to hire a contractor to reverse the inco
ect installation of the laminate flooring.
Issue:
Is the contractor entitled to compensation for work done?
Rules:
Termination of a contract can occur by performing the obligations of the contract. This is described in Dorothy DuPlessis, Shannon O’Byrne, Philip King, Lo
ie Adams, Steven Enman,