Reference no: EM132350213
Jim contracted with Deck Builders to have a deck built on his house. It was agreed that Jim would pay $8,500 for the deck - that would include the lumber, labor and clean up. A design was agreed upon. Jim had to be out of town the week the work was to be done.
Once Deck Builders started the job they realized they would have to remove some concrete and other debris where the footings were to go. That plus some other problems they had not anticipated made the job much more difficult than they had planned.
When Jim got home he got a bill for $9,500. He was really upset. Deck Builders explained that the additional problems had to be dealt with and that it just took more time than they thought. Jim points out that in addition to the $1,000 additional charge, he is upset that much of the deck was built with nails, not deck screws. He also believes the some of the wood used was not of a very high quality lumber and had more than average imperfections.
After a few days Jim offers to pay $6,500 for the work in order to just resolve the situation. Deck Builders says it will take $8,000. Finally Jim and Deck Builders agree that Jim will pay $7,250 and everyone will call it good. What does this situation represent, is it a method of discharging a contract? If not, what is the type of discharge of agreement?
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