Betty Builder owns an unimproved real estate lot and wants to build a new home according to a particular set of plans and specifications. She solicits bids from several building contractors. Quality Builders, LLC submits a bid for $250,000. Harrison Construction, Inc. submits a bid for $240,000. Fine Structures, LLC submits a bid for $235,000. Betty accepts Fine Structure's bid. One month after beginning construction, the contractor calls Betty and advisers her that because of a recent price hike for materials, the costs of construction have increased. The contractor advises that they will not finish the house unless Betty agrees to pay an extra $20,000. Betty is not pleased, but ultimately agrees to pay the amount requested.

Instructions:

• Consider the above fact situation and then discuss whether Fine Structures is legally able to make the request for the additional payment. Why or why not?
• Under what circumstances would Fine Structures be able to make such a request and would Betty Builder be bound to perform