Is Faraj legally required to pay this additional amount in this case? Melissa Faraj owns a lot and wants to build a house according to a particular set of plans and specifications. She solicits bids from building contractors and receives three bids: one from Carlton for $160,000, one from Feldberg for $158,000, and one from Siegel for $153,000. She accepts Siegel's bid. One month after beginning construction of the house, Siegel contacts Faraj and tells her that because of inflation and a recent price hike for materials, his costs have gone up. He says he will not finish the house unless Faraj agrees to pay an extra $13,000. Faraj reluctantly agrees to pay the additional sum.

The issues that arises between the Faraj and Siegel can be discussed by three different groups in resolving the contract agreement.

Note: Kindly find an attached copy of the complete question below.

Explanation:

Solution

In this case between Faraj and Siege'ls building contractors the following issue are discussed by three groups as follows:

(1) The contractor can increase the price of finishing construction based on inflation and the cost of raising materials during inflation prices for the materials increases or goes up and this will affect the customer gradually.

(2) Faraj will not pay the additional amount requested by Siegel because according to the contract the amount she has to pay is $153,000

(3) Issues or problems that might come up during construction is listed below:

answer; standing committee;

i guess you could put raise the economic balance