Question

Falcone Roofing Co. entered into a written contract with Costa to put a new roof on the latter’s residence for $1,800, using a specified type of roofing, and to complete the job without unreasonable delay. Falcone undertook the work within a week thereafter, but when all the roofing material as at the site and the labor 50 percent completed, the premises were totally destroyed by fire caused by lightning. Falcone submitted a bill to Costa for $1,200 for materials furnished and labor performed up to the time of the destruction of the premises. Costa refused to pay the bill, and Falcone now seeks payment from Costa.

1.​Highlight the pertinent facts;

2.​Identify the issue of law and/or fact posed by the case problem;

3.​What should be the decision in the case?

4.​The reasoning for such decision.

Answer 1

1.The given case is a written contract between Falcone Roofing Co. and Costa to put a new roof on Costa's residence for $1,800, which was not completed due to lightening a natural calamity (unanticipated risk). Amount of $1200 asked by falcone from Costa on completion of 50% work( same day destruction took place) which should actually cost $900.

2. contract law ( breach of contract), insurance

3. So its now Falcone Roofing Co.'s responsibility to either complete the contract by making it again to receive full amount of the contract.

OR  amount of $1200 as compensation should be paid by costa to falcone for the work done as in case of natural disaster, insurance amount is not received by the parties to contract. moreover in this question/ contract nothing is mentioned about the insurance. so it is just an assumed answer, it may have multiple answers

4. a)when it was 50 % completed means costing around $900 then it was totally destroyed by fire ( nonperformance of contract) - so falcone should complete the contract to receive full amount of the contract. as he is legally binding to the contract

b) this destruction was caused by lightening means natural disaster or calamity and as per rule the damages caused by natural disasters are not covered under insurance meaning thereby that the amount of insurance will not be received.