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On October 1, Inez hired Custom Builders Inc. of Fredericton, NB to build her a house. Inez agreed to pay $400,000 to Custom Builders and
On October 1, Inez hired Custom Builders Inc. of Fredericton, NB to build her a house. Inez agreed to pay $400,000 to Custom Builders and Custom Builders agreed to complete the house by January 1 of the following yearAfter construction began, Custom realized that it was going to cost considerably more than originally estimated to obtain the building materials from its supplier. Custom Builders therefore sent a letter to indicating that the price of the house would have to increase by $20,000 and asked her to sign a copy of the letter, agreeing to pay the increased price. Inez was not happy about the increased price but reluctantly signed the letter as requested. a. Assume that the house is completed by January 1. Is Inez obligated to pay $400,000 or $420,000 to Custom Builders ? Explain providing legal reasoning b. Assume that the house is completed by January 1, but Inez refuses to pay any money to Custom Builders because she has discovered structural flaws in the house. Custom Builders sues Inez for breach of contract. In which court will Custom Builders bring its lawsuit? What is the jurisdiction of that court? c. Assume that the house is not completed by January 1 and Inez sues Custom Builders for breach of contract. In the lawsuit, Custom Builders claimed that the increase in the price of building supplies had frustrated the contract. What are the requirements for frustration and has the contract between Custom Builders and Inez been frustrated?
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