The following case study poses a significant question, and one that will be revisited after we get through remedies and secured transactions. The issues raised by this contract case study are myriad and I want you to do the following: I want you to first issue spot the case study in light of chapters 10 through 13. Once you are finished with the issue spotting, I want you to pick one of the following lines of contract theory and prosecute the case as to why Ashton Development is not liable for the final billing of $72,286.45. Then in your responses you must use one of the alternate theories and tell your classmate why Ashton is liable for the final billing. The theories are as follows:

1. Consideration

2. Promissory Estoppel

3. Misrepresentation and Fraud

4. Economic Duress

5. Mistake

6. Undue Influence

Ashton Developments general contractor, Britton, hired Rich & Whillock to do grading and excavation on one of Ashtons construction projects for $112,990. After a months work, Rich & Whillock encountered rock on the projected site. Ashton and Britton agreed that rock would have to be blasted and that this would involve extra costs because the original contract between Ashton and Rich & Whillock specified that any rock encountered would be considered extra. Britton directed Rich & Whillock to go ahead with the blasting and bill for the extra cost.

Rich & Whillock did so, submitting separate invoices for the regular contract work and the extra blasting work and receiving payment every two weeks. After completing the work and receiving payments totaling $190,000, Rich & Whillock submitted a final billing for an additional $72,286.45. This time, Britton refused to pay, stating that he and Ashton had no money left to pay the final billing. In response to Whillocks statement that Rich & Whillock would go broke without this final payment because it was a new business with rented equipment and numerous subcontractors waiting to be paid, Britton stated that he and Ashton would pay $50,000 or nothing, and Rich & Whillock could sue for the full amount if they were not satisfied with this compromise.

Questions:

Prosecute Ashton Development's right to withhold final payment from the list of above contract theories covered in the text?

If you are short on word count, answer the following, why is your theory ethical in its use by Ashton Development?

In your replies, Counter Ashton's claim with an alternate theory in favor of Rich&Whillock. Why is their claim ethical?