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Bob entered into a written contract with Joe to put a new roof on Joe’s home. When all the roofing material was at the site and the labor was 50 percent completed, Joe’s home was totally destroyed by fire caused by lightning. Bob demands that Joe pay for materials and the cost of labor expended by Bob. Should Bob be paid, and why? Will there be a different result if the fire was caused by Bob’s negligence, why? Discuss the ways a contract may be discharged by agreement of the parties. Performance under a contract may be subject to conditions that are express or implied. Discuss this concept.

Operation Management, Management Studies

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