The Palermos And Colorado Carpet Essay

1318 Words Apr 1st, 2016 null Page
1. Goods versus Services.

A. ISSUE: Discuss fully whether the contract between the Palermos and Colorado Carpet was primarily for the sale of goods or the sale of serv┬Čices.

The contract between the Palermos and Colorado Carpet was primarily for the sale of services because the Palermos orally agreed to the purchase and installation of the carpet. After Colorado Carpet had begun installing the carpet, Mrs. Palermo was dissatisfied. Therefore, the installation of the carpet is part of the service in the contract.

B. RESOLUTION: [Colorado Carpet Installation, Inc. v. Palermo, 668 P.2d 1384 (Colo. 1983)] How did the court answer the questions? What did the court decide?

The court decided the contract was a sale of services and was enforceable because the agreement consisted of a service contract for the performance of labor; which was not required to be in writing in the section of the Uniform Commercial Code of the Statue of Frauds. Supposing the whole agreement consisted of a sale of goods contract, the section of the agreement relating to the purchase and installation of the carpet was within the specially manufactured goods exception to the Statute of Frauds. Therefore, the contract would have still been enforceable. As a result, the court awarded Colorado Carpet $1,356.50 in damages.

C. EXPLANATION: Do you agree with the court? Why or why not? Can you change any facts to give a different result?

Yes, I agree with the court because the oral contract…

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