Advise Danny as to whether he is obligated by law to pay Marina the bonus and explain the legal reasons supporting your advice.

Danny (he/him) owns a restaurant supply and renovation business, D-Squared, which works with restaurants in the New York area.  You work for Danny as his business manager. As part of your job, you are responsible for advising Danny on legal issues that arise with his customers and business associates. For this assignment, please create a memo from you to Danny, advising Danny 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, Hallie (she/her) entered into a contract with Danny (he/him), to renovate and upgrade her café in Manhattan at a cost of $600,000. The work included renovating of the space to expand the kitchen area, redesigning of the kitchen and seating area, replacing the windows and doors and purchasing new kitchen equipment. Hallie provided Danny with a payment of $300,000 to begin the work, with the remainder due upon completion of the job by September 1. Danny completed the job on time and sent Hallie a bill for the remaining $300,000 on September 1. On September 15, Hallie called Danny and told him she was not happy with the restoration job, the windows and doors were of poor quality and the dining area did not look nicer than it had at the beginning of the renovation. Danny told Hallie that the restoration was of the highest quality and the restaurant looked brand new. After several discussions, Hallie sent Danny a check for $200,000, stating that “this payment is in full satisfaction of the amount due under the contract.”

Danny asks you to advise him as to what to do with the check. Please advise Danny of the legal implications of accepting the payment and the options available to him.

•  Danny hired Len (he/him), a designer, for a six-month contract to redecorate Hallie’s Cafe. The contract provided that Len was to be paid $20,000 to “create a custom design, and seating for the dining room of Hailie’s café.” During the renovations, Danny and meet for ice cream. During their conversation, Danny says to Len, “Your work is so great, I am going to pay you a bonus of $5,000.” Len completes his work and at the end of the contract Danny pays him $20,000. Len demands his bonus of $5,000.

Please advise Danny as to whether he must pay Len the promised bonus and explain the legal reasons supporting your advice.

• In order to have enough cash for the upgrade of the kitchen for Hallie’s café, Danny borrowed $50,000 from his friend Audri (she/her). Danny and Audri entered into a written and signed agreement, stating that Danny was to pay Audri $50,000 by November 1 without interest. When the time came to re-pay Audri, Danny called Audri explaining he was short of cash and could only pay Audri $45,000 by November 1, but that he would include a $5,000 gift certificate for Hallie’s Café as full payment of the amount due. Audri told Danny that she was very disappointed in him but would enjoy the gift certificate for the café and would accept this as full payment of the loan. Danny sent Audri a check for $45,000 and the gift certificate on October 31.

After thinking things over, Audri decided she was angry with Danny and sued him to collect the additional $5,000.

Please advise Danny of the legal issues involved in Audri’s lawsuit and whether she will be successful in her claim for the $5,000.

• Marina (she/her) has been the kitchen designer for D-Squared Hospitality for 20 years. On June 1, Marina tells Danny she wishes to retire on September 1 upon completion of Hallie’s project. At Marina’s retirement dinner on September 2, Danny tells Marina that without her he would never have succeeded and wants to thank her with a $20,000 retirement gift. Marina thanks Danny and goes home to tell her family of Danny’s generosity. Her daughter advises Marina to ask Danny to put his promise in writing. She writes Danny and asks him to confirm his promise to pay the bonus. Danny responds in writing on September 6 assuring Marina that the bonus is on its way. A month later, not having heard from Danny, Marina calls and asks when she will be receiving her bonus. Danny, upset by Hallie’s dissatisfaction with the project, changes his mind about paying Marina.

Please advise Danny as to whether he is obligated by law to pay Marina the bonus and explain the legal reasons supporting your advice.

See next page for memo format

Memo

To: Danny

From: (Your name)

Re: Legal issues Regarding Hallie’s Cafe

Date:

Issue 1:

Issue 2:

Issue 3:

Issue 4: