Question

Mike is a homeowner. Jill runs a snowplowing business. Mike asks Jill to provide an estimate for

how much she would charge to snowplow Mike’s driveway. After Jill inspects Mike’s driveway,

the parties have the following email conversation on September 1, 2016:

Jill: “$50 each time I snowplow your driveway.”

Mike: “OK, sounds good. Please do so.”

Jill regularly snowplows Joe’s driveway during the 2016-17 season. In May 2017, Jill sends a bill

to Mike for all visits she made in the 2016-17 season, and Mike promptly pays that bill in full

without any other communication taking place between Jill and Mike.

• Jill regularly snowplows Mike’s driveway during the 2017-18 season and sends a bill for

those visits in May 2018. What are the rights and responsibilities of the parties under

contract law?

• Instead, assume that Jill does not come during the first major snowfall in 2017. Does Mike

have any contractual rights against

JILL?

  Explain fully.

• Ignore the previous bullets. Instead, assume Mike promptly pays the 2016-17 bill in full

without any other communication. On September 1, 2017, Jill raises her prices 20% for all

of her customers, and she notifies Mike of this fact. He does not respond. Jill regularly

snowplows Mike’s driveway during the 2017-18 season and in May 2018 sends Mike a bill

for those visits reflecting her increased prices. What are the right and responsibilities of

the parties under contract law.

Answer 1

Answer= As per the contract law, Jill has the responsibility to ask Mile whether the same agreement or contract that was made for the previous year is still in existence or the new contract has to be made. On the other hand, Jill also has the responsibility to communicate whether the earlier contract is terminated or not and whether the services of Jill is still required for the next season.

When it comes to rights, if Jill has provided the service to Mike, then Jill has the right to get the payment for the services made to Jill if Mike does not stop him to provide him the same service as of the last season. If the service was not required, then Mike should immediately inform the same to Jill and asking him to stop the service and paying the dues for the work done till that time.

Answer= As in this case the terms of the contract between the two parties are changed, so the earlier contract becomes invalid and therefore it is important for Jill to take the confirmation from Mike about the new service rates before performing any further services for Mike. Similarly, as soon as Mike receives the notice of change in the service fee, he has to reply back to Jill whether he accepts or rejects the new service offers.

As there was no notification from Mark, thus it will be considered that Mark has accepted the terms but in case of a contract, the silence cannot be treated as the acceptance of the changed contract as this will be a new sales contract and the acceptance should be clear. However as the service is still being provided by Jill and Mark did not stops him doing so, so Mark has to pay Jill on the basis of the earlier contract terms. Jill must ensure that Mark accepts the new terms and conditions and sends him the acceptance