Business Law

As to each situation is there adequate consideration to bind the parties? Situation A. 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. Situation B. Cedar was working on a major project. The administrative assistant assigned to help on the project, Day, was extremely helpful and was the key to Cedar being able to complete the project. The project was completed on time and under budget. Cedar sent Day a text message acknowledging the assistance given and promised to give Day a $5,000 bonus. When Day did not receive the bonus he filed a complaint against Cedar for underpayment of wages.

Situation C. Forest was working on a major deal. To complete the task, he asked his assistant Great to stay late on a few occasions. Great was not required to work any overtime hours and if worked, Great was paid for the extra time worked. While working on the project Forest sent Great an e-mail, "Ive Realize how much time and effort you are contributing. If we get this deal I will give you and extra weeks pay." Forest got the deal but never gave Great any money. Great asked you, as a student in business law if Forest is legally obligated to pay the additional money.

1. What is the result for Situation A and why?

2. (Situation B) How should the hearing officer assigned to rule on the complaint decide? Why?

3. (Situation C) What should you answer? Why?