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Amara has bought an expensive new racehorse (Alexia) which is due to arrive in about three months on 27th January 2022. To accommodate the horse,

Amara has bought an expensive new racehorse (Alexia) which is due to arrive in about three months on 27th January 2022. To accommodate the horse, she must expand her stable, which requires major building work. Amara immediately arranges for several local builders to inspect the stable and give their prices for carrying out the work. Only one builder, Andy, tells Amara that he would be able to complete the work before Alexia's arrival. Amara and Andy agree on a total fixed price of 60,000. After the project has already been running for several weeks, Andy tells Amara that he will not be able to complete the work unless Amara agrees to pay him an extra amount of 40,000. Amara protests that no such price was agreed by them, but after a heated exchange when Andy threatens not to continue the work, Amara reluctantly agrees to revise the price. She knows that it would not be possible for her to find an alternative accommodation for Alexia at short notice. At the beginning of December, Andy realises that he will have problems finishing the project on time. He therefore contacts Lukas, also a builder and a close friend, who he hopes will help him in this critical situation. After a short period of consideration, Lukas informs Andy via email that he is willing to fit all of the interior and exterior doors of the stable for a total fixed price of 2,000. Andy posts a letter to Lukas notifying him that he agrees with these conditions on 8th December. This letter is correctly addressed but is delayed in the mail and is not delivered until 15th December. Already on the day

before (14th December, 10am), Lukas had emailed Andy saying: "I have to revoke my offer. I have underestimated the cost of materials in my original price and have to revise it upwards by 1000 (3000 in total)." Andy does not check his emails until very late in the evening of 16thDecember. Tired after a very busy day, and wrongly believing the email to be from another builder, he deletes it without reading its contents. On 17th December, concerned that he has nothing from Lukas, Andy telephones to check that Lukas has started his work. Lukas says he will be on-site as agreed provided Andy agrees to a payment of 3,000. Andy is shocked to hear this demand, but, fearing delay in the completion of the project, ultimately agrees to pay. Having completed the stable expansion on time, Andy demands the original contract price plus an extra amount of 40,000 from Amara, but Amara refuses to pay the extra amount. On the other hand, Lukas claims 3,000 from Andy, though Andy thinks that he does not owe him more than a total amount of 2000.

advise Andy

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