Question

John is sitting on his front parch when Painter Bill shows up and begins to pint his house. John knows Bill is at the wrong house, but lets Bill continue and finish his work. After Bill completes the job he ask John for the remainder of his Bill $2000.00 John replies Bill is at the wrong house and that he does not have a contract with Bill and refuses to pay him.

Does Bill have a Contract with John? If he not does John have any alternative action to recover damages? If so what is that action and how much can he recover

Answer 1

Bill has a contract with John in this case. Here Bill has painted the house by mistake and John saw him painting and knew that he is doing the same by mistake. Hence only Bill is mistaken here and it is a unilateral mistake. Here an implied contract is created by John with Bill to paint the house as Bill has provided the painting work, John did not try to prevent Bill from painting the house and John knew that he is expected to pay for the painting work. In the case of a unilateral mistake, the contract is not void if the non-mistaken party may try to take advantage of the mistake. Here John has undertaken the risk of paying for the painting services provided by Bill as he allowed the work even after knowing he is mistaken. Hence John will have to provide damages for breach of contract if he does not pay for the services. Bill has undergone loss based on the misrepresentation made by John through his silence and hence Bill can recover the compensatory damages that will help to to restore him to the original position if the contract was not been made.