Manny (he/him) is a building contractor with offices in Queens. You work for Manny as his business manager. As part of your job, you are responsible for advising Manny on legal issues that arise with his clients and business associates.
For this assignment, please create a memo from you to Manny advising Manny on how the business should respond to the following legal issues: (Note: memo format is at the end of the assignment.) 1. On May 1, Manny enters into a contract with Carly (she/her), the owner of a single-family home in Astoria, to renovate her home at a cost of $500,000. The work was to include a new kitchen, two new bathrooms, replacement windows, doors and renovation of the floors and woodwork throughout the house.
Carly provided Manny with a payment of $250,000 to begin the work with the remainder due upon completion of the job. Manny completed the job on time and sent Carly a bill for the remaining $250,000 on September 1. On September 2, Carly called Manny and told him she was not happy with the restoration job, the floors and woodwork did not look different than they had at the beginning of the renovation and the windows and doors leaked. Manny told Carly that the restoration was of the highest quality and the house looked brand new.
After several discussions, Carly sent Manny a check for $150,000, stating that “this payment is in full satisfaction of the amount due under the contract.” Manny asks you to advise him as to what to do with the check. Please advise Manny of his options regarding Carly’s payment and the legal implications of each option. 2. Manny hired Shin (he/him), a painter, for a six-month contract to do custom decorative painting on Carly’s house. The contract provides that Shin was to be paid $15,000 to “custom paint the living room and dining room of Carly’s house.” During the renovations, Manny and Shin met for coffee.
During their conversation, Manny said to Shin, “Your work is so great, I am going to pay you a bonus of $5,000.” Shin completes his work and at the end of the contract Manny pays him $15,000. Shin demands his bonus of $5,000. Please advise Manny as to whether he must pay Shin the promised bonus and explain the legal reasons supporting your decision. 3. Midway through the renovations of Carly’s home, the painter Manny had hired to paint the bedrooms and bathrooms quit. Manny sees Shin on the job site and asks him if he would be willing to paint the additional spaces for an additional $10,000. Shin agrees and completes the job.
When Shin asks for his final payment, Manny decides he only wants to pay Shin the original $15,000. Please advise Manny as to whether he must pay Shin the additional $10,000 and explain the legal reasons supporting your decision. 3. Jen (she/her) has been Manny’s office assistant for 20 years. On June 1, Jen tells Manny she wishes to retire on September 1 upon completion of Carly’s project.
At Jen’s retirement dinner on September 2, Manny tells Jen that without her he would never have succeeded and wants to thank her with a $20,000 retirement gift. Jen thanks Manny and goes home to tell her family of Manny’s generosity. Her son advises Jen to ask Manny to put his promise in writing. Jen writes Manny and asks him to confirm his promise to pay the bonus. Manny responds in a signed, written letter on September 6, assuring Jen that she has earned the bonus and the check is on its way. A month later, not having heard from Manny, Jen calls and asks when she will be receiving her bonus. Manny, upset by Carly’s dissatisfaction with the project, changes his mind about paying Jen.
Please advise Manny as to whether he is obligated by law to pay Jen the bonus and explain the legal reasons supporting your advice.