Joe Was a Contractor and Hired Subtrades to Help Build

question 123

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% 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% 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.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.

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Definitions:

Reward

Recognition or compensation given for achievement, service, or performance, serving as a motivator or incentive in various contexts.

Punishment Distribution

Describes the process and principles by which penalties are allocated or assigned within an organization or system.

Disagreements

Situations where two or more parties have differing opinions, values, or interests.

Outdoor Experience

Outdoor experience involves activities and adventures that take place in natural settings, offering physical and mental health benefits.