Discuss what types of extraordinary difficulties could arise

Assignment Help Business Law and Ethics

Reference no: EM133394592

Case Study: Melissa Faraj owns a land lot and wants to build a house according to a particular set of plans and specifications. She solicits bids from building contractors and receives three bids: one from Carlton for $160,000, one from Feldberg for $158,000, and one from Siegel for $153,000. She accepts Siegel's bid. One month after beginning construction of the house, Seigel contacts Faraj and tells her that because of inflation and a recent price hike for materials, his costs have gone up. He says he will not finish the house unless Faraj agrees to pay an extra $13,000. Faraj reluctantly agrees to pay the additional sum.

Questions:
1. Can a contractor ever raise the price of completing construction because of inflation and the rising cost of materials? Explain.

2. Assume that after the house is finished, Faraj refuses to pay the extra $13,000. Is Faraj legally required to pay this additional amount? Explain.

3. Discuss what types of extraordinary difficulties could arise during construction. Could such difficulties ever justify a contractor's charging more than the original bid? Explain.

Reference no: EM133394592

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