Question

In: Operations Management

Please use IRAC format to answer this question. John and his wife needed their house painted....


Please use IRAC format to answer this question.
John and his wife needed their house painted. John wanted to hired Tom to paint the house. Tom estimated it would take 40 hours of labor at $50.00 per hour and 20 gallons of premium paint at $20.00 per gallon. John agreed to pay the labor charge but decided he would buy his own premium paint. John and Tom entered into a valid written contract for the painting of the house: one coat, one color, in one week, for $2000.00, and John would supply all of the premium paint needed I order to paint the house. John went to the paint store to buy the paint when he noticed a sale on non-premium paint. The price per can was substantially cheaper. The premium paint was $20 a can and the paint that was on sale was $5 a can. John brought cheaper paint.

Tom started to paint the house and immediately realized that the cheap paint was not covering as well as the premium paint and that 20 gallons would not be enough. Tom advised John that he would need more paint after the first day on the job.

On the second day, John's wife Marge decided that she wanted the eight doors to the house painted a different color, candy apple red. Tom told her it would take an extra two hours and an extra gallon of paint. Marge agreed verbally. Tom went to the paint store and purchased one can of candy apple red paint requested by Marge at $30 a can.

At the end of the fourth day (32 hours), Tom ran out of paint. The house was painted on only three sides. Tom had painted the eight doors in the color requested by Marge.

John refused to buy more paint. Tom did not have paint on the fifth day, so he packed up his equipment and sent John a bill for 32 hours of labor and one gallon of paint.

John believes Tom wasted the paint so that he would not have enough to finish the house. John hates the color Marge chose for the doors and says that was not part of the contract.

John refused to pay the bill.

In his suit against John, what are Tom's rights and what damages, if any, will he recover? Discuss.

Solutions

Expert Solution

Issue: The issue in the Case is John and his wife needed to paint the house. They hired Tom for the job he agreed on certain terms and conditions. The conditions were this process would take 40 hours of labor at $50.00 per hour and 20 gallons of premium paint at $20.00 per gallon. The John agreed on the term mentioned by the Tom. He said he would provide his own premium paint. So, he went to the market to purchase the paint and bought the cheap or non- premium paint at $ 5 per gallon. The cheap paint was not covering the walls same as premium paint so it took more paint to cover the wall. On the second day of the Job John’s wife said that also paint the eight doors to the house painted a different color, candy apple red. Tom told her that it would take an extra two hours and an extra gallon of paint. Marge agreed verbally. Tom went to the paint store and purchased one can of candy apple red paint requested by Marge at $30 a can. John refused to buy more paint. So, when the paint was over he presented the bill to the john about 32 hours of labor and one gallon of paint. But John refused to pay to Tom. He also said that he doesn’t like the color Candy Red chose for doors and say it was not the part of contract.

Rule: The contract between two parties is present for either of the party is not liable to break the contract. The contract made either verbally or in written is to be followed by both the party. Hence, John is responsible for the bill.

Application:

The john was not paid for the amount for which the Tom has done the Job and Even John’s wife decision also. John is responsible to pay for the job which Tom has done. It is John’s fault that he does not provided the paint to the Tom for which they agreed.

Tom was in the contract as he was liable to complete the job for the given time and he didn’t finish the job.

Conclusion:

The conclusion of the case shows that the Tom asking for the money or bill amount which is legally valid or else John should provide the paint for the remaining work. The Tom damages are loss of pay for labour charges and loss of pay for the extra gallon of paint. Yes he can recover from John.


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