Question

The R & R Door Company, a manufacturer of custom doors, orally contracted with Rolland to design and build custom doors for Rolland’s house at a price of $1,500.00 per door or a total cost of $6,000.00 for four doors. After R & R completed substantial work on the doors, Rolland changed his mind and decided against custom doors because of the price. He advised R & R of his decision and told them he would not accept delivery of the doors. Nevertheless, R & R finished the small amount of work that had to be done and delivered the doors. Rolland claimed that he was not legally bound to take the doors since the contract was not in writing as required by the statute of frauds. Is Rolland legally bound to take the doors and to pay for them? Discuss why or why not.

Answer 1

Oral contracts are binding if it fulfils certain essentials of the contract. Accordingly, in the above case, following essentials were fulfilled:

• R&R agreed to undertake the contract of building custom doors for Rolland’s house at total cost of $6,000.00 for four doors. There was no counter agreement in the process. Hence the offer and acceptance, though orally, was certainly valid.
• Both the parties gave something in consideration or exchange in the contract. R&R rendered the built of custom doors while Rolland was suppose to pay for the same (only in this case, Rolland later breached).
• The doors so built had an actual value for Rolland and was already substantially built by R&R.
• Both the parties were in knowledge of the creation of contract and its consideration in the process.
• No incompetency in the contract such as an act of minor, etc. was evident.

However, the breach happened because Rolland failed to honor the same. I fact, he advised that he would not accept the delivery of the doors that was earlier agreed upon. This breach makes Rolland liable for the suit and make him legally bound to take the doors and to pay for them.