Lucas and Mia hired Sparkling Pool Construction (SPC) to build a swimming pool f
ID: 379784 • Letter: L
Question
Lucas and Mia hired Sparkling Pool Construction (SPC) to build a swimming pool for their dream backyard for the contract price of $20,000. The date for completion of the contract was for June 1, just in time for the swimming season. During the excavation process, the job took a lot longer than SPC anticipated. Because of this SPC demanded payment of $2,000 extra on top of the agreed $20,000. During the conversation Lucas and Mia hesitated about the extra payments when SPC reminded them that all the other pool companies in town were booked and would likely not be able to finish the pool in time for summer. Lucas and Mia did not want to leave a giant hole in their backyard so they reluctantly agreed to the extra $2,000. The pool was completed before June 1 and SPC demanded payment in full of $22,000. Lucas and Mia refused to pay the extra $2,000.
Dissect this fact pattern above and define all legal principles involved. Was a second contract successfully negotiated? Was their a breach by any party? Is there a remedy by the non-breaching party? Did the breaching party have any better avenues for their demands or refusals? What is the likely result in court?
Explanation / Answer
Legal principles involved
Second contract was only an oral contract. The extra $2000 demanded were not added to the contract price in a written agreement signed between SPC and Lucas & Mia.
There was a breach by Lucas and Mia. SPC may seek compensation from court. SPC will have to prove that $2000 was promised but there was a breach by the parties.
It can be proved that there was a breach of the oral contract. SPC can then get $2000 through the court of law. It will be granted on the basis of principle of promissory estoppel. It means that a contract can be an oral contract; a written contract is not required for the provisions to be enforceable. Statute of fraud requires a contract to be a written contract. It exempts specially manufactured goods, contract between two merchants, partially performed contracts. Breaching party could have taken this to court.
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