P&L HW 9 - 10/30/07 CEE 4804 Case 9: Jackson Builders...

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10/30/07 CEE 4804 Case 9: Jackson Builders vs. A.J.Smith Overview: In this case Jackson Builders sued A.J. Smith and Michael Keith Hanson for breach of contract. Smith filed a counterclaim denying liability and stated that Jackson Builders breached the contract. Hanson was an employee of Jackson builders and was the primary contact between Smith and Jackson Builders. Jackson Builders was contracted to construct a home for Smith with a preconstruction appraisal of $300,000. AmSouth is the bank that loaned the money, but the only loaned $290,000 for construction of the house. Smith received an inheritance of 16,000 that gave him the initial capital needed to begin construction. After the project had been going on, Smith created a ledger of expenditures for the project. At this point it is unclear whether Jackson refused to complete the project or whether Smith did not allow Jackson to return to the site. So this case is about who breached the contract. Key Facts: Before he received the inheritance Jackson deposited $25,000 into the account to cover the initial cost of a log cabin kit needed, leaving $9,000 remaining in the account after Smith’s inheritance was deposited. During construction of the house one of the log-cabin walls cracked. It is unsure who filed a claim against the log-cabin company, but it was settled for $2,500. The problem here is that Jackson make six withdraws for the construction of the house
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This note was uploaded on 04/17/2008 for the course CEE 4804 taught by Professor Adsonger during the Fall '07 term at Virginia Tech.

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P&L HW 9 - 10/30/07 CEE 4804 Case 9: Jackson Builders...

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