Law project 2
cqdx2007
project_2.doc11/22/2016
PROJECT 2
CONTRACTS PAPER
20% of Final Grade
Instructions: Write a 35 page paper in response to the fact scenario provided below. The paper must be
double spaced and include a list of works cited (not included in the page count). You may use outside sources
for this paper but you are not required to. All of the information you need to complete this paper is provided in
the course materials. However, you still need to include intext citations when you use any source in this paper.
Fact Scenario – Part 1: Contractors, Inc. contracted with College to build a 20room, 2 story classroom
building, constructed of gray bricks, and according to architectural specifications provided by College. The
building is to be located on campus at the corner of Campus Way and Academic Avenue at a contract cost of
$5,000,000, and to be completed by August 1, 2013. This August 1 deadline would give College just enough
time to move into the building and prepare the inside for classes to begin August 14. College informed
Contractors that time was of the essence and that this is a tight timeline for moving into the new building.
The valid, written contract read, in part, as follows:
CONTRACT
We, the undersigned, party of the first part, hereinafter College, and party of the second part, hereinafter
Contractors, Inc. hereby agree to the following:
1) Contractors, Inc. will build a 20room, 2story classroom building constructed of gray bricks, at the corner of
Campus Way and Academic Avenue, in accordance with the architectural specifications stipulated by College
and attached hereto and in compliance with Maryland building codes and regulations for new construction;
2) Contractors, Inc. will complete the construction project at a total cost of $5,000,000, inclusive;
3) Contractors, Inc. will complete the construction project not later than August 1, 2013. Time is of the essence.
College will pay Contractors, Inc. for the completed project, the sum of $5,000,000 not later than August 7,
2013.
Signed:
Robert Jones [sign]
Robert Jones
President, College
Date: January 10, 2013
Signed:
John Doe [sign]
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Project 2 Instructions BMGT 380 7980 Business Law I (2168)
John Doe
President, Contractors, Inc.
Date: January 10, 2013
Fact Scenario Part 2
On May 28, 2013, after the construction was more than half completed, the cost of bricks used for construction
of the building increased substantially in the marketplace so that Contractors could no longer construct the
building for $5,000,000. Contractors told College that it would need an additional $250,000 to complete the
building using gray bricks on the exterior. College agreed to modify the original contract to increase the
construction costs by $250,000, bringing the total cost of the project to $5,250,000.
College and Contractors drew up the following contract modification as an addendum to the original contract:
CONTRACT ADDENDUM
We, the undersigned, party of the first part, hereinafter College, and party of the second part, hereinafter
Contractors, Inc. hereby agree to the following modification to the original agreement:
1) In addition to the contractual agreed upon cost of $5,000,000, College will pay Contractors, Inc. an additional
$250,000 to build a 20room, 2story classroom building constructed of gray bricks, at the corner of Campus
Way and Academic Avenue;
2) College will pay Contractors, Inc. for the completed project, the sum of $5,250,000 not later than August 7,
2013;
3) This modification does not in any way change any other terms of the original contract (attached hereto).
Signed:
Robert Jones [sign]
Robert Jones
President, College
Date: June 1, 2013
Signed:
John Doe [sign]
John Doe
President, Contractors, Inc.
Date: June 1, 2013
After the contract modification, Contractors continued to work on the building but did not meet the August 1
completion deadline. The building was completed on August 21, 2013.
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Project 2 Instructions BMGT 380 7980 Business Law I (2168)
In the meantime, fall semester classes began at College on August 14, making it necessary for College to lease
classroom space from August 14September 4, 2013. College necessarily had to hold classes in the leased space
for 3 weeks until September 4 because it took 2 weeks (from August 21) for College to move into the new
building and prepare it for classes. The lease costs were $5,000 per week, for a total of $15,000 for 3 weeks.
College paid Contractors $5,000,000 on September 4, but refused to pay the additional $250,000. College filed
suit against Contractors for breach of contract.
Contractors countersued College for breach of contract.
Questions to Address in your Paper:
Please label each part of paper as listed below.
Part I: Discuss the basis of a breach of contract claim by College against Contractors, any potential
damages College could claim and the likely outcome of a lawsuit.
34 paragraphs minimum with in text cites; in depth, comprehensive; outside resources not necessary as all
classroom resources will be sufficient.
Part II: Discuss the basis of a breach of contract claim of Contractors against College, any potential
damages Contractors could claim and the likely outcome of a lawsuit.
34 paragraphs minimum with in text cites; in depth, comprehensive; outside resources not necessary as all
classroom resources will be sufficient.
NOTE You must provide a detailed analysis and scrutiny of the facts in this case. You should identify:
a) thelegal issues presented,
b) the relevant rules of law that apply,
c) your analysis of the case and
d) yourconclusions about the outcome.
In order to earn full credit, your analysis must be well supported by legal principles found in your sources.
If you assert your opinion or your conclusions, it is important to show how
you arrived there.
What are you relying upon to draw your conclusions (what facts and what laws)? Please let
me know if you have questions.
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