1. Birch contracted with Ace Builders to renovate his residence. Cost of renovations as agreed in writing was $185,000. About six weeks before the renovations were completed Ace advised Birch that it had underestimated cost and labor and would need another $20,000 to complete the job on time. If they were not paid additional money Ace would need another 6-8 weeks to complete the job. Birch was paying about $12,500 per month in mortgage, insurance and utilities so it would cost him more if the job were extended for two months. After thinking about his choices, Birch signed an amendment to the renovation agreement to pay additional $20,000 if Ace finished the job on time.

After the renovations were completed Birch refused to pay the additional $20,000 and Ace sued. Result? Why