Marilyn Contracted with Bravo Builders to Build an Addition to Her

question 49

Multiple Choice

Marilyn contracted with Bravo Builders to build an addition to her house for $15,000. After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job. Assuming Marilyn agrees, which of the following is correct?

• A) Marilyn will have to pay $20,000.
• B) This is a contract under seal which is enforceable.
• C) This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders.
• D) This is the settlement of a disputed debt that requires no additional consideration on the part of Bravo Builders.

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Definitions:

Working Papers

Working papers are documents prepared or obtained by auditors as part of their audit process, documenting the evidence and rationale for their conclusions.

Surrender

The act of giving up something, especially legal rights or claims, to another party.

Court Orders

Legal commands issued by a court or judge, requiring a person or entity to do or cease doing a specific action.

Common Law Fraud

A deceptive practice that involves making false representations of fact with the intention of inducing someone to part with something of value or to surrender a legal right.