Clark_11e-AM-Ch17.doc

Clark_11e-AM-Ch17.doc - C HAPTER 1 7 P ERFORMANCE AND D...

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133 C HAPTER 17 P ERFORMANCE AND D ISCHARGE A NSWER TO Q UESTIONS AT THE E NDS OF THE C ASES CASE 17.1—QUESTIONS (PAGE 340) 1A. The New York Court of Appeals found that Jacob & Youngs had substan- tially performed the contract. To what, if any, remedy was Kent entitled? Kent is entitled to be compensated for the difference between the value of the “Reading manu- facture” pipe specified in the contract and the pipe that was actually installed. 2A. A requirement of substantial performance is good faith. Do you think in good faith? Why or why not? Probably. The failure to fully perform the contract must not be willful. The facts state that the failure was due to a subcontractor’s over- sight. The court seemed to believe that the oversight was a mistake and not intentional. CASE 17.2—(PAGE 343) WHAT IF THE FACTS WERE DIFFERENT? Suppose that during his ten-week absence Shah was fulfilling prior profes- sional obligations and that on his return he had met Cover-It’s hours and time-keeping requirements. Further suppose that Shah responded to Gold- witz’s questions about his projects with reasonable estimates. Would the out- come of the case have been different? Why or why not? Because these circum- stances seemed to weigh most heavily in the case against Shah, the result would likely have been different if the facts had been as stated in this question. Shah’s wasting time while at work, however—by surfing the Internet for long periods—was also a significant factor and might have been sufficient to support the finding of a breach. THE E-COMMERCE DIMENSION If Shah had worked for Cover-It from his home by telecommuting over the In- ternet and other employees were therefore not aware of his conduct, would he have been in breach of his contract ? Many of the circumstances that were held to be material in this case might have been different if Shah had telecommuted from home. For example, Shah’s surfing of unrelated Web sites, his unwillingness to punch a time card, and the number that he actually worked might have gone unnoticed, a least by other Cover-It employees. This would have minimized any negative impact Shah’s be-
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134 UNIT THREE: CONTRACTS AND E-CONTRACTS havior could have had on the other employees and might have tempered Cover-It’s reac- tion. Ultimately, however, it was not the effect Shah had, or might have had, on Cover- It’s employees that determined whether he had breached his employment contract. The finding of a breach resulted from Shah’s failure to meet his obligations under the con- tract. CASE 17.3—(PAGE 348) THE ETHICAL DIMENSION Should Pantagis have offered to reschedule the reception? Would this have absolved Pantagis of the obligation to refund the Factors’ prepayment? Ex- plain. No. In fact, Pantagis did offer to reschedule the reception after it seemed clear, on the night of the event, that the power would not soon come back on. According to the
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This note was uploaded on 10/11/2010 for the course MGT 301 taught by Professor Pederson during the Fall '10 term at SUNY Stony Brook.

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Clark_11e-AM-Ch17.doc - C HAPTER 1 7 P ERFORMANCE AND D...

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