Assume that you work for a law firm, Jones & Associates, which is located at 764 Seneca Street, Toronto, Ontario, M3X 2X2.   The telephone number is (416) 476-1234.

Your firm represents 980555 Ontario Ltd. carrying on business as Computer Accessories Unlimited, a company that sells computer accessories to large retailers.  They entered in to a contract with Frederick Nelson, operating a business known as Total Laptop Cases (“Total”) to provide $54,000.00 (plus HST) worth of customized laptop cases.   The contract was numbered 19-1827 and was dated and signed on November 2, 2019.  The sum of $5,000 was paid upon signing the contract and the balance was due “net 15 days” from the date the contract signed.   The contract stated that interest will be charged at 9.5% per annum on any monies outstanding.   Total was not doing well and decided to back out of the contract.   Your client had specific logos imprinted on the lap top cases, in accordance with the instructions of Total, and therefore, your client cannot sell them to anyone else.  Your client sued the Defendant on January 3, 2020 for the outstanding monies (court file # 5252/20).  A statement of defence was filed on January 18, 2020.  The lawyers for the Defendant are Finestone and Rubbel.  Their address is 234 Bay Street, Toronto, Ontario, M1N 2B3.  

Assume it is now March 30, 2020, and the Defendant served your client with a formal Rule 49 Offer to Settle to pay $35,000 as a full settlement, inclusive of all interest and costs.  They propose to pay in 5 equal instalments of $7,000 each on the 30th day of each month starting March 30, 2020, by way of post-dated cheques.  Your client is considering the Defendant's offer and would like to know what is owed as of today (March 30, 2020) so they will know how much they are giving up by settling the case.  Your client says if they accept the offer (of $35,000) they want the defendant to agree that if there is default on any of the payments, the client will get judgment for the full amount outstanding pursuant to the terms of settlement plus costs in the amount of $2,000.  The defendant agreed to these terms and has asked that when they have paid in full according to the offer, the plaintiff should sign a release of the original claim and have the action dismissed without costs.  Our client has agreed to accept the offer and to provide a release and have the action dismissed without costs once payment in accordance with the settlement has been made.

TO DO:

1. Calculate the amount that would be owed on the original bill (including prejudgment interest) as of March 30, 2020.  Show all your work - how you arrived at your answer including the computation of days.

2. Draft the Minutes of Settlement reflecting the terms of settlement, including the acceptance of $35,000 as a full and final settlement.

3. Draft a separate Consent To Judgment.

4. Draft the Release.  Be sure to put in the date when it would actually be given.