On January 1, A and B entered into a contract under which B agreed to renovate A's house by September 1 for $60,000.00. By June 2, B has not yet started the renovations, and A is worried, so A tells B that he will pay him an extra $5,000.00 if B completes the renovations on time. When the job starts, A says, "I'll pay you an additional $5,000.00 if you fix that cracked board in my fence. B will complete the job by September 1, including the repair of the cracked board. What is the total consideration owed to B? Justify your answer.

 

Clarification Requested: I understand that A's offer of an additional $5,000 is not valid, as the consideration for services was already previously accepted at $60,000, and 'nervous money' is not accepted for a previous obligation. I do want to know, however, how the cracked fence arrangement plays into the original contract in a detailed way. The total consideration for renos and fence repair is $65,000, however, would it likely have been settled by A and B using a contract addendum for the original contract? Or is a verbal arrangement sufficient?
Would then the bilateral nature of the renovation contract absorb the unilateral nature of the fence repair into one, consolidated contract- or are they separate contracts, of different nature, ultimately? 

Answer rating: 100% (QA)

In this scenario there are a few legal concepts and principles at play including the modification of contracts additional consideration and the nature ... View the full answer