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Question: Bob the Builder and Wendy were partners in their construction business and were general contractors. They submitted a bid to construct a new building for the the city. They included Lumberjack's quote for supplying the wood in their bid. Lumberjack's quote described its work as "furnishing and delivering the wood from its location to the job site for a price of $1,850/truck load." However, Lumberjack's quote did not mention anything about traffic control, security, or escort services. Bob and Wendy were awarded the contract.
Thereafter, Bob contacted Lumberjack about the wood he and Wendy would need for the project. Lumberjack sent a letter to Bob and Wendy, confirming that it would hold the required lumber and would deliver it to the project site upon receiving a two- week notice from them. Bob and Wendy never responded to this letter. The next month, Lumberjack sent additional two additional letters to Bob and Wendy, however, they failed to answer those. After another two months and no response on further letters, the parties met. Bob then sent Lumberjack a letter, detailing how Lumberjack insisted on their commitment to buy the wood from Lumberjack before it would even quote them a price. Also, Bob informed Lumberjack that they never intended to purchase everything from its company. Ultimately, Bob and Wendy had purchased the wood they needed from Handy Manny's Lumber Yard. Thereafter, Lumberjack sued Bob and Wendy for breach of contract.
Which law (UCC or common law) will the court apply when determining the breach of contract issue and why?
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This assignment related to business law.
Answer all the questions under business law.
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Advise what tax consequences arise in respect of the payments.
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