Question

In: Accounting

On May 1, Brown & Son enter into a written contract with Gary Green to paint...

On May 1, Brown & Son enter into a written contract with Gary Green to paint his cottage over the July 1 Canada Day long weekend for $1000. On May 2, Brown & Son obtain a contract with the Langley School Board to paint the Sussex Middle School by July 15 for $5000. In June, Brown’s son becomes ill. Without the help of his son, Brown feels that he will not be able to complete both the Sussex Middle School contract and the Green contract on time. Brown calls Green to tell him that the contract is off. Green agrees. The next morning, Brown’s son makes a remarkable recovery from his illness, and he is back at work by that afternoon. Brown realizes that he can now finish both contracts on time. He calls

Green to affirm that he will be able to paint his house after all. Green tells Brown that his services are no longer required. Brown reminds Green of the written agreement, and threatens to sue him. What claim, if any, does Brown have against Green?

Solutions

Expert Solution

Answer :-

A)If green fails in providing any evidence that the contract was been cancelled by the brown itself.

.

However if he is having written contract and green didn't have any proof that brown itself cancel contract first .

Then green will be liable for specific performance or charge of reasonable amount for the cancellation of contract as the court thinks fit.

Specific performance here is the painting work offered by green earlier.

.

B)

Issue : Is brown doing right ? Or ethical ?

Does brown file against green ,what will the court decide?

.

Analysis: As studying above case we came to know that brown is doing unethical with the green and it's the brown who itself cancel contract

Then again forcing green to enforce that written contract and warning him he will sue against him (brown)

Remedy : Now it's necessary for the green to produce such kind of evidence which may prove that brown itself cancel the contract

And if he fails to do so he will be charged with reasonable amount by the court or will be liable for specific performance.

.

Step-by-step explanation

A)

If green fails in providing any evidence that the contract was been cancelled by the brown itself.

However if he is having written contract and green didn't have any proof that brown itself cancel contract first .

Then green will be liable for specific performance or charge of reasonable amount for the cancellation of contract as the court thinks fit.

Specific performance here is the painting work offered by green earlier.

B)

Issue : Is brown doing right ? Or ethical ?

Does brown file against green ,what will the court decide?

.

Analysis: As studying above case we came to know that brown is doing unethical with the green and it's the brown who itself cancel contract

Then again forcing green to enforce that written contract and warning him he will sue against him (brown)

Remedy : Now it's necessary for the green to produce such kind of evidence which may prove that brown itself cancel the contract

And if he fails to do so he will be charged with reasonable amount by the court or will be liable for specific performance.

So it highly advisable that whatever deal you are doing /contracting with other parties ,all that must be in writing and even cancellation of those contract also must be in writing so that one might be escaped from these kind of circumstances or fraud/threat.


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