Assume homeowner enters into a written agreement with a contractor to replace th

Question

Assume homeowner enters into a written agreement with a contractor to replace the kitchen cabinets and countertops for $5,000.00. The contractor removes the existing kitchen and then tells the homeowner he will return with the new kitchen cabinets and counter tops to finish the work required by the written agreement. When the contractor returns, he informs homeowner that because of a price increase imposed by his supplier, the contractor can no longer perform the agreement. He tells homeowner that he will complete the job only if homeowner will sign a new written agreement which is exactly the same but the price is now $6,500.00. Homeowner signs the agreement and contractor completes the work. Homeowner tenders contractor payment of $5,000.00. Contractor sues for $1,500.00. Discuss the arguments to be made by each party. Which party will prevail legally? Why?

Explanation / Answer

The parties to a contract are always open to change the terms of the contract and agree upon new terms provided the same is not done through coertion or undue influence that is the freeconsent of the parties.

If any body proves the change in terms is not due to freeconsent then the change in terms is void.

Since in the present situation, the home owner accepted the change in terms by written consent and the same is binding on him. Hence contractor can sue the home owner for the differential amount provided he can prove that the change in terms agreed with free consent.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.