Joe Was a Contractor and Hired Subtrades to Help Build

question 71

Essay

Joe was a contractor and hired subtrades to help build his houses.Sam was a framer and had agreed to frame four houses for Joe for a set price.Joe was to supply the materials.After two houses were completed,Joe's suppliers increased the cost of lumber,and Joe told Sam that he could no longer pay him the amount that they'd agreed.Sam agreed to take 15 percent less for the other two jobs,which were then completed.During this time,regular payments were made from Joe to Sam,but the total amount received was 15 percent lower than the originally agreed on price for the last two jobs.Sam sued Joe for the original contract price,claiming that he'd received no consideration for his agreement to take less for the last two jobs.Explain what defences may be available to Joe under these circumstances and his likelihood of success.

---

Definitions:

Cohesiveness

Refers to the degree of camaraderie within a group.

Productivity

The measure of efficiency in converting inputs into useful outputs, often evaluated in terms of the amount of output produced per unit of input.

Reward Allocation Norms

Guidelines or principles that dictate how rewards such as recognition, salary increases, or promotions are distributed within an organization.

Social Loafing

The tendency of individuals to exert less effort on a task when working in a group than when working alone.