Business Law Contracts, Defenses, Breach, And Remedies The Dream House:

-Was your contract with Bobby a unilateral or bilateral contract; if unilateral, at what time did Bobby substantially undertake performance?

The prerequisites for a bilateral contract are that an offer must be made, that offer must be accepted, and consideration must be tendered. In the Dream House scenario, I offered Bobby an opportunity to build my house in exchange for $500,000, and Bobby accepted my offer. Bargaining the performance of construction work in exchange for a predetermined payment amount represents consideration, completing the third and final requirement and making this agreement a bilateral contract.

-What remedies and/or damages are available to you and to Bobby?

I would be able to sue Bobby for damages while seeking the amount needed to compensate Sheila to complete the unfinished job, which amounts to a sum of $350,000. Conversely, Bobby could defend himself by claiming that he must be discharged from the contract on grounds that substantial performance has been achieved. However, this defense strategy is only applicable in situations whereby the party in...

Ellenberg, 681 So.2d 791 (3rd. Dist. FL 10/2/1996). Considering the fact that Bobby voluntarily walked off of the job, he has placed himself in material breach of the bilateral contract, and therefore his defense on the grounds of substantial performance will fail.
-Since Sheila's cost to complete the house is more than half the cost, who sees a loss from the hurricane?

If one assumes that satisfaction of a judgment for $350,000 can be obtained against Bobby, then Bobby is the only party in the Dream House scenario who stands to incur a financial loss from the damage caused by the hurricane. Fortunately, I would absorb no losses, as I would likely recover all losses associated with the construction setback, and in addition to my out-of-pocket costs the expected judgment would result in me being awarded $450,000, a sum equal to the $350,000 paid to Sheila plus the $100,000 progress payment paid to Bobby.

Q3.The Nightmare House:

-Do you have a good basis for rescinding the sale?

In the…