Agreement in ivan-virgil governed by uniform commercial code

Reference no: EM133684046

Section V. Case Analysis. The written responses should demonstrate knowledge of both the legal principles involved in the Scenario and critical thought in applying the legal principles to the Scenario provided. Write short answers in sentence and paragraph form to each of the following questions after reviewing and analyzing the Scenario

Scenario: Ivan is a sixteen-year-old owner of a landscaping and lawn service business in Greenville, NJ. Virgil is an adult customer of Ivan's services and had been for six months. As the winter season approached, Ivan spoke to Virgil about drumming up business in Virgil's neighborhood for his new snow removal division. Ivan told Virgil that he will take $10 off Virgil's monthly landscaping bill for six months, starting in March of 2022, for each new customer that Virgil refers to Ivan for snow removal at Ivan's snow job rate of $100 per house. Virgil tells Ivan that he is willing to give it some thought. Before leaving, Ivan handed Virgil some of his business cards and thirty fliers that bore Ivan's name and a general description of the residential snow removal services Ivan plans to offer at the $100 rate discussed. The flyer also included Ivan's phone number and the phrase "inquire about our first-time customer discount."

The following week, Virgil decided to help Ivan out. He gave Ivan's flyers to twenty of his friends and neighbors and spoke favorably to them about Ivan's new service. Fifteen of them agreed to use Ivan for their snow removal services. In the winter months, 12 of these friends/neighbors did use Ivan for snow removal on at least one occasion. Ivan performed the initial services requested by Virgil's friends and neighbors and gave them all his discounted, new customer rate of $75 for their initial snow removal job. Ivan also advised each new customer that his standard rate of $100 would apply to their second and subsequent snow removal jobs when requested. Only 3 of Virgil's referrals used Ivan a second time. Ivan charged these three referral customers $100 for their second and subsequent snow removal jobs. All three of these referral customers offered the flyer that Virgil gave them to their friends and families when Virgil told them that Ivan agreed to give him a $10 discount off the price for services for six months for each new customer referred to Ivan. As a result of the referrals from these 3 friends of Virgil, Ivan received five new repeat customers.

In February 2022, Virgil caught up with Ivan and asked him to resume his regular landscaping services in March. During that conversation, Ivan thanked Virgil for his assistance and for the referral of three new customers to him, and gratefully advised Virgil that he would receive a credit on his monthly landscape bill in the amount of $30 for the next six months as promised. Virgil was surprised to hear that he would receive only $30 off his monthly landscaping services and protested to Ivan that he sent him more than ten referral customers for which Ivan provided snow removal services. Virgil told Ivan that he expected to receive a full $10 credit off of his Spring/Summer services for six months for every snow removal job that Ivan performed for all 12 of the referrals that Virgil provided and Ivan serviced. Ivan sarcastically said "yeah, right! You just want free services from me" and exclaimed "that was certainly not part of any deal that we had." Both men became angry at one another, exchanged hostile words and Virgil walked away frustrated and outraged that he would not receive the full amount of the credits that he anticipated. Just before leaving, however, Virgil threatened to hire another landscaper and a lawyer to sue Ivan for breach of contract and to recover the amount of a monthly credit of at least $120 for the Spring/Summer months, as well as any difference in price should the new landscaper charge him more than $100 per month for such services.

1. Did Ivan and Virgil have a meeting of the minds between them? If so, identify the material terms of their Agreement and state whether any such Contract between them is a bilateral or unilateral Contract.

2. Was the apparent agreement between Ivan and Virgil governed by the Uniform Commercial Code? Explain why or why not.

3. Assuming that Virgil sues Ivan and asserts a breach of contract claim against him, identify and explain two (2) defenses that Ivan might successfully assert in that lawsuit. Be sure to persuasively explain and fully analyze your chosen defenses.

4. Assuming that Virgil sues Ivan and asserts a fraud claim against him, identify the elements of a legal fraud claim and analyze each element to determine whether such a claim will likely be successful.

Reference no: EM133684046

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