Reference no: EM13993739

Smith hired Jones Construction to build a detached garage on her property according to certain specifications for $15,000. The contract called for Smith to pay Jones $5,000 “up front,” to disburse an additional $5,000 at various stages of the construction, and to make a final payment of $5,000 at completion of construction. Jones built the garage but Smith complained that Jones’s workmanship was substandard and that Jones had failed to build the garage to the specifications provided in the contract. Smith refused to make the final $5,000 payment. After Jones threatened to sue Smith for the $5,000, the parties came to an agreement that Smith would pay Jones $1,500 and Jones would accept the $1,500 as full payment of the contract. Smith paid Jones $1,500, making clear that it was for full payment of the contract, and Jones accepted the payment. Who is liable to whom for what if Jones decides to sue Smith in small claims court for an additional $3500? Who is liable to whom for what if an inspector for Smith’s locality finds the garage is not built to code specifications and orders it to be torn down and rebuilt correctly?