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II. (a) Owen owned a wooden house and hired Camila, a carpenter, to do carpentry repair work on the house. The agreed price was $5,000,

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II. (a) Owen owned a wooden house and hired Camila, a carpenter, to do carpentry repair work on the house. The agreed price was $5,000, to be paid on completion of the work. After Camila finished the work and sent Owen her invoice, Owen discovered Camila had not replaced some rotten wooden siding on the house that had been there since before she started working on the house. An estimate from another contractor showed that replacing the rotten siding would cost an additional $1,250. Owen told Camila that she (Camila) was supposed to have replaced the rotten siding as part of her contract and refused to pay her the $5,000. Camila told Owen that her contract did not cover this work and demanded payment of the $5,000. Owen then sent a check for $4,000 to Camila with an letter that said, "I don't like to get into this kind of a dispute. I am enclosing my check for $4,000 in full payment for your carpentry and painting." Camila receives the letter and the check. What should Camila do if she wants to try to recover the $1,000 balance she believes that Owen still owes? Explain fully. (b) In part(a), assume that there was no rotten siding and no dispute over the amount owed, but Owen did not pay. Two months after payment was due, Owen wrote to Camila, "I am facing some financial problems. I'll pay you $4,000 if you will accept it in full payment." Camila wrote back, "Since I have given up hope of getting the full amount out of you, I'll take the $4,000 in full payment." Owen paid the $4,000. Later, Camila sues Owen for the $1,000 balance. May she recover? Explain fully

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