Contracts Keyed to Calamariback
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A patient went to a highly reputable dentist, who honestly told her that she needed a lot of dental work, some of it involving complex procedures. When she asked the dentist what the cost would be, he told her “about $3,500.” The patient agreed to use him as her dentist and he began her treatment. When the patient’s treatment was finished, the dentist sent her a bill for $4,100, explaining that the higher bill was because more expensive inlays were used, and that he carefully documented the cost of his materials and had sound medical reasons for his decision. The patient honestly believed that it was unfair for the dentist to charge her $4,100.
Therefore, she sent the dentist’s invoice back to him, along with a check for $3,500. On the check, the patient had clearly written “Payment In Full.” The dentist read the notation on the check and deposited it at his bank. The dentist made no notation of his own on the check other than his signature on the back as an indorsement. Two weeks later the dentist called his bank to make sure that the patient’s check had cleared. He then immediately filed suit against the patient for $600.
Will the court award the dentist $600?CorrectIncorrect
A car owner was having problems with her car’s brakes. The brake shop to which she brought her car told her that the entire hydraulic brake system needed to be replaced at a cost of $1,800. The car owner agreed to have the work performed, and the shop replaced the brake system. When the car owner picked up the car, she insisted on testing the brakes before paying for the work. During a test drive, the brakes squeaked when compressed but other- wise worked perfectly. The mechanic told the car owner that the squeak would disappear on its own in a few days. The car owner stated that she would pay the shop when the squeak disappeared and left with her car. A month later, the brakes still squeaked and the car owner refused to pay for the work. The shop files suit to collect the $1,800 contract price.
The court should find that:CorrectIncorrect
A homeowner contracted with a local heating company to install two baseboard heaters in an addition to his home for a total cost of $3,500. This figure included the heaters and labor costs for installation. Upon completion of the installation, the heating company sent an invoice to the homeowner for the $3,500. The homeowner did not immediately pay the bill because the heaters were too noisy. The heating company sent a repair worker to the home to service the heaters, but after several attempts to fix the problem, the heaters were still too loud.
The homeowner contacted a qualified repair- man to find out how to fix the problem and was told it would cost an additional $300 for new blowers and $150 in labor costs to replace the faulty blowers. The homeowner mailed the heating company a copy of the repair estimate and a check for $3,050—the contract price less the cost of new blowers and labor to install them— and wrote prominently on the check “Payment in full for installation of two baseboard heaters.” The heating company cashed the check upon receipt. The heating company then sued the homeowner for $450, the difference between the agreed contract price and the amount paid.
Will the heating company be successful in recouping the $450 from the homeowner?CorrectIncorrect
A mechanic rebuilt the engine in a car owner’s car, pursuant to a written contract, at an agreed price of $1,400. The car owner called the mechanic and told him in good faith that the car was still not operating properly and he refused to tender payment.
The mechanic sent the car owner a letter reminding him that payment was overdue. On January 1, the car owner responded with a letter agreeing to pay $1,200 if the mechanic agreed to rebuild the car again within ten days. The mechanic did not answer the letter. The car owner mailed a check for $1,200 and wrote, “Payment in full in accordance with terms of letter sent January 1.” The mechanic cashed the check but did not rebuild the car within ten days. The car owner sent letters and called to demand performance, but the mechanic has not responded.
When the mechanic first rebuilt the car, the car owner refused to tender payment. If the car owner’s actions did not constitute a breach it was becauseCorrectIncorrect
A roller bearing company agreed in writing to supply a motor company with 1,000,000 roller bearings for $7,000,000 on March 1. On March 1, the roller bearing company had in its inventory only 970,000 roller bearings, and they delivered that number to the motor company. The motor company refused delivery and payment and asserted an action against the roller bearing company for breach of contract. Should the motor company prevail?CorrectIncorrect