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Reviewing Contract Information

In: Business and Management

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Reviewing Contract Formation

Under what circumstances would the parties decide to use negotiation to settle this dispute?
The owner of the strip mall in Ohio, Adrian Reese, made an attempt to repair and update the two public restrooms at the strip mall in order to resolve the complaints from several of his tenants within the mall. Mr. Reese resides in New York and decided to hire a licensed contractor, Lyle Copeland, from Ohio. Mr. Copeland was contracted to remodel the two public restrooms and repair the archaic plumbing. Mr. Copeland immediately initiated work on the restrooms on the date which was agreed upon by both parties; however, the work progressed very slowly from this point. During the remodeling, Mr. Copeland was attempting to remove some older piping and accidentally severed the main water pipe. Subsequently, Mr. Reese’s strip mall suffered massive flooding which resulted in $300,000 in property damage and several of the tenants vacating the property. The owner, Mr. Reese, blames the flooding and ensuing property on the negligence of Mr. Copeland, the licensed contractor. Mr. Copeland denies liability for the damages as he affirmatively declares that the flooding was an accident. In this situation, it may be cost-effective for both parties to resolve this dispute via the process of negotiation. Since the owner of the strip mall, Mr. Reese resides in New York and his property is located in Ohio, he may incur huge expenses as the lawsuit could be filed in the state of Ohio and Mr. Reese would need to retain legal counsel in Ohio for the sake of properly addressing any laws specific to this state. Another scenario is that Mr. Reese’s former tenants in the strip mall may file individual lawsuits due to property loss and damages incurred within the flood; therefore, the owner may want to save court costs by negotiating with Mr. Copeland to

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