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Hello, I just wanna know which is the answer to this, and why Thank you Consideration Practice Question 3 Owen owns a section of vacant
Hello, I just wanna know which is the answer to this, and why
Thank you
Consideration Practice Question 3 Owen owns a section of vacant land. He signs a contract with Hannah for Hannah to build his dream home on the land. Hannah, as the head contractor, then enters into subcontracts with subcontractors to do various parts of the construction. (Note that the contract between Owen and Hannah is separate from the subcontracts, and Owen is not a party to any subcontract.) Sally is the subcontractor doing the electrical work. A dispute has been developing between Hannah and Sally. Sally insists that, according to the subcontract between her and Hannah, Hannah has underpaid her by $10,000. Hannah insists that Sally has been correctly paid under the subcontract. Sally then refuses to complete the electrical work. Owen has heard of the dispute. He does not want the construction to be delayed, so he offers to pay Sally $10,000 if she completes the electrical work. Sally gladly accepts the offer. After Owen has paid, Sally still refuses to complete the work. It has also been established that Hannah was correct: under the subcontract Sally should have completed the work without the extra $10,000 payment. Which of the following statements is correct? a. Owen has no contract with Sally; so Sally owes no contractual obligation to Owen to complete the work. b. Owen is entitled to recover the $10,000 from Hanna and in turn, Hannah from Sally, under the respective contracts between them. c. There is a contract between Owen and Sally; however, only Sally would be entitled to enforce the contract if Owen had not paid. d. Owen has a contract with Sally, and is entitled to sue Sally for recoverable losses he suffers as a result of Sally's failure to perform the contract
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