Directions:

For each scenario, do the following:

(a) state which law (UCC Article 2 or Common Law) applies to the scenario;

(b) define and apply the 4 elements of contract formation to determine whether or not the parties formed a contract;

(c) define the contract terms if you think the parties formed a contract.

Scenario 2

Cal Carpenter designs and installs custom kitchens, designing the remodel from start to finish. Lee wants a new kitchen and interviews Cal for the job.

Lee: I want everything to go, down to the studs. The new cabinets and new counters must be measured to fit my height requirements (Lee is 6'2" and tired of low counters), and new appliances installed. You select the best appliances you can find as this is the last house I will ever own, and it needs to fit me like a glove. And I want the best appliances for once in my life...no more bargain stuff.

Cal: I have taken measurements and am familiar with the cost of the best appliances on the market. Here's what I can do: Appliances will cost $34,000, materials $6,000, and my design and labor $30,000. I can start the project in 5 weeks; this is my busy season.

Lee: I need work to begin immediately as my son is getting married at home in 4 weeks. The remodel must be completed by then.

Cal: To meet your deadline, I'll need my assistant, so total labor will cost $40,000.