Question

Shoddy Roofing Company agrees to do the roofing on a building owned by Tacky Construction Company for $50,000. One week after Shoddy finishes work, over 20% of the shingles fall off due to improper installation. Tacky promises Shoddy an additional $10,000 to reinstall the fallen shingles, and Shoddy does so. Then Tacky refuses to pay Shoddy more than $50,000 for the work. Identify the true statement with regard to this situation.
A. Shoddy is not entitled to any more than $50,000 for its work.
B. Tacky owes Shoddy the additional $10,000.
C. Shoddy would still be entitled only to $50,000 if the shingles had fallen off due to an unforeseeable earthquake hitting the building.
D. Shoddy would still be entitled only to $50,000 if the parties had voluntarily cancelled their original contract and entered a new one for $60,000.

Answer

This answer is hidden. It contains 201 characters.