Question: Melissa Faraj owns a lot and wants to build a

Melissa Faraj owns a 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 begin-ning construction of the house, Siegel contacts Faraj and tells her that because of inflation and a recent price hike for materials, he will not finish the house unless Faraj agrees to pay an extra $ 13,000. Faraj reluctantly agrees to pay the additional sum.
(a) One group will discuss whether a contractor can ever raise the price of completing construction based on inflation and the rising cost of materials.
(b) A second group will assume that after the house is finished, Faraj refuses to pay the extra $ 13,000. The group will decide whether Faraj is legally required to pay this additional amount.
(c) A third group will discuss the types of extraordinary difficulties that could arise during construction that would justify a contractor charging more than the original bid.

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  • CreatedJune 18, 2014
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