Associated Builders, Inc., provided labor and materials to William M. Coggins and Benjamin W. Coggins, doing business as Ben & Bill's Chocolate Emporium, to complete a structure on Main Street in Bar Harbor, Maine. After a dispute arose regarding compensation, Associated and the Cogginses executed an agreement stating that there existed an outstanding balance of $70,000 and setting forth the following terms of repayment:
It is agreed that, two payments will be made by the Cogginses to Associated Builders as follows: Twenty Five Thousand Dollars ($25,000.00) on or before June 1, 2012, and Twenty Five Thousand Dollars ($25,000.00) on or before June 1, 2013. No interest will be charged or paid providing payments are made as agreed. If the payments are not made as agreed then interest shall accrue at 10% per annum figured from the date of default. It is further agreed that Associated Builders will forfeit the balance of Twenty Thousand Dollars and No Cents ($20,000.00) providing the above payments are made as agreed.
The Cogginses made their first payment in accordance with the agreement. The second payment, however, was delivered three days late on June 4, 2013. Claiming a breach of the contract, Associated contended that the remainder of the original balance of $20,000, plus interest and cost, were now due.
(a) What arguments would support Associated's claim for $20,000?
(b) What arguments would support the claim by the Cogginses that they were not liable for $20,000?
(c) For what damages, if any, are the Cogginses liable? Explain.