Peg agreed to build a warehouse for Orville for $300,000 and to have it completed by the Christmas retail season. Unfortunately, Peg ran into difficulties and could not complete the warehouse on time unless she received more money from Orville to enable her to pay her employees overtime. Orville, although not happy about the situation, nonetheless agreed in writing to pay an additional $5,000. Work progressed on schedule and the warehouse was completed on time. When the work was completed, however, Orville had a change of heart and he refused to pay the additional $5,000.

a. Is Orville legally obligated to pay the additional $5,000? Explain

b. Briefly explain how Peg could have better protected herself in this situation.