Business Law

Topics: Contract, Masonry, Contractual term Pages: 6 (1897 words) Published: May 14, 2013
Dustin Brown
Student ID# 202011
BBA 3210, Business Law
Research Project: Analyzing a Contract
August 22, 2012

“Analyzing a Contract”
I have identified a basic contract that is used when a provider and client have agreed to a specific service and payment for service (Savetz, 2012). The contract is at the end of this paper. In my scenario, the Client has requested the Provider to complete a concrete pad in the back yard of his new home. I will analyze this contract and identify the type of contract used, whether the contract is fair, if the contract is integrated or not, if the contract allows for the assignability of rights, and if the obligator can appoint another party to perform the contractual duties. I have identified the Client as McVay, and the Provider as Thomas. Thomas is the sole owner and employee of the company Concrete 123, in Sacramento California.

Joshua McVay has just purchased a new home located in Sacramento California. As with most homes, the developer did not complete the back yard landscaping. No lawn, patio, or shrubbery were constructed in the back yard by the developer. The back yard was filled with dirt and is flat. McVay has chosen to contract with John Thomas, an independent contractor to complete a concrete pad in his back yard for a covered patio. McVay chose Thomas after obtaining three different quotes from three different concrete construction masonry companies. Thomas was the lowest bidder between the three companies that McVay surveyed. All of the companies were licensed appropriately and all had more than ten years of experience in the field of masonry. John Thomas is the sole owner of the masonry company named Concrete 123, and is the only employee. Concrete 123’s area of business is based in Sacramento California, in Sacramento County. Thomas has the appropriate licenses and experience to conduct the work and has been self employed as a concrete installer for approximately seven (7) years. Prior to this Thomas was employed by other companies as a concrete installer for approximately 15 years, totaling 22 years of experience in masonry work. Thomas was contacted by McVay to perform the necessary work to complete a 12 foot by 12 foot, 3 inch thick concrete pad on his property. Thomas would conduct all of the necessary work to complete the concrete pad. McVay has obtained the necessary permits from the appropriate jurisdiction to complete the work. No special work was defined and the concrete pad was the kind similar to a standard flat concrete pad with a standard broom finish. There were no unusual specifications and no unusual ground work to be completed such as excess water draining issues or sub-ground leveling issues. The attached contract was used to solidify their arraignment.

In this instance, there is potentially a third party beneficiary. It is the mortgage company. Since the mortgage company carries a bank note on the property, they would have an interest in the contract since intended work to the property would increase the value of said property. The mortgager would become involved if McVay defaulted on his bank note, making the mortgager the possessor and owner of the property. The mortgage company would potentially become an unintended party to the contract and would have rights to the contract.

This particular contract is a bilateral contract since both parties agree to a promise to each other (Mallor, Barnes Bowers & Langvardt, 2007. pg. 278-279). In this contract, the Provider Thomas promises to construct a 12 foot by 12 foot concrete pad for use as a patio. The Client McVay agrees to pay Thomas a certain amount of United States currency for compensation after building concrete pad to specification. This contract would be governed by the common law of contracts since it is a service contract as indicated in the contract that services are rendered. The “goods” being purchased, a concrete pad, are also not movable or...
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