Can someone help me answer this ?? Thanks _.a The offer declares 3. Homeowner an
ID: 350759 • Letter: C
Question
Can someone help me answer this ?? Thanks
_.a The offer declares 3. Homeowner and Builder contract for the construction of a home in exchange for payment of $100,000.00. Builder begins constructing the home, but the Homeowner wrongfully cancels the contract before Builder has finished construction. Builder still has building materials. Builder makes no attempt to sell the materials or use them in another project. Instead, Builder leaves the materials on Homeowner's premise and allows them to decay. Builder then sues Homeowner for the unpaid portion of the contract price, which is $20,000.00. will Builder receive the $20,000? Why or why not?Explanation / Answer
Yes, the builder will receive the amount of $20,000.00 for the unpaid portion. As the builder has not used the material for any other projects and leaves it in houseowner premises.
As in this case, Houseowner has 'wrongfully cancelled the conctract' which shows their is no proper reason to cancel the contract. According to DISCHARGE OF CONTRACT, When the contract is cancelled during the performance of the Contract (ie., the construction of the house), The party who fails or refuses to perform his obligation under the contract is liable to pay for compensation to the another party. In any case, construction of a house includes the materials used by the builder. Unless, if it is clearly mentioned the Single exchange of payment for completly build house with specification as per the agreement.
The houseowner need not to pay the amount of $20,000.00 as sues by the builder in the Following circumstances. If the houseowner finds and state a reason against the builder like impossibility of performance within the specified time, destruction of subject matter, non existence or non occurence of a particular state of things, incapability etc.
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