Posted: May 19th, 2017

Paul painted Elwood’s house. Elwood agreed to pay Paul “standard rates” for his services. After painting was completed, Paul and Elwood executed the following written document: “In exchange for Paul’s prior services in painting his house, Elwood, a licensed electrician, agrees to rewire Paul’s house. Paul hereby releases any claim he may have against Elwood for the unpaid painting bill.” Elwood started work on Paul’s house but skipped town without finishing. The house was not inhabitable and Paul had to pay another electrician $2,000 to finish it. 1) If Paul sues Elwood for breach of contract, which of the following will be the court’s decision?

Paul painted Elwood’s house. Elwood agreed to pay Paul “standard rates” for his services. After painting was completed, Paul and Elwood executed the following written document: “In exchange for Paul’s prior services in painting his house, Elwood, a licensed electrician, agrees to rewire Paul’s house. Paul hereby releases any claim he may have against Elwood for the unpaid painting bill.” Elwood started work on Paul’s house but skipped town without finishing. The house was not inhabitable and Paul had to pay another electrician $2,000 to finish it. 1) If Paul sues Elwood for breach of contract, which of the following will be the court’s decision? (A) Paul can recover for Elwood’s breach of a valid agreement made in settlement and discharge of an unliquidated claim by Paul against Elwood for Paul’s prior painting services. (B) Paul can only recover for Elwood’s breach of promise under the doctrine of promissory estoppel because there was no bargained for consideration for Elwood’s promise. (C) Paul cannot recover more than nominal damages in any event, because his other damages, if any, were speculative. (D) Paul cannot recover because Elwood’s promise to rewire Paul’s house was given in substance, if not in form, for Paul’s past services.