BUSI 336 CASE STUDY 13

Overview

1. Chapter 13/15 (Consideration and Voluntary Consent)Instructions: Review the questions below and type your responses into a MICROSOFT WORD DOCUMENT. Remember to individually number each response. Upload the document into Blackboard. NOTE: Please do not upload documents in any other format as Blackboard will not recognize them.ber to individually number each response. Upload the document into Blackboard. NOTE: Please do not upload documents in any other format as Blackboard will not recognize them.Facts: Frank is building a home for his elderly grandmother (“Granny”) pursuant to a valid, written contract that calls for completion by December 31 st. Two months into the project, Frank realizes he has underbid the work and will make just half of the profit he expected. He is also falling behind and is unlikely to finish on schedule without hiring additional labor. He asks Granny if she will give him extra money to finish the house but she is unwilling to do so. Frank begins to whine, “C’mon Granny – I thought we wuz kin! Fine. I done my best but it weren’t good enough. Looks like your great-grand-babies ain’t gonna have no Christmas this year. Boo-hoo! Boo-hoo!” Frank dries his tears on a written addendum to the contract that he has conveniently drawn up, adding $10,000 to the contract price. Granny reluctantly signs the addendum and returns it to Frank. 1. Is this contract governed by common law or the UCC? Explain. 2. Assume Frank completes the home on-time but Granny refuses to pay him the extra $10,000. If Frank sues Granny for breach of contract, who will prevail at trial? Explain your response. [Hint: there are two issues in this case - consideration and consent].