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31 Oct 2018

Smith hired Jones Construction to build a detached garage on herproperty according to certain specifications for $15,000. Thecontract called for Smith to pay Jones $5,000 “up front,” todisburse an additional $5,000 at various stages of theconstruction, and to make a final payment of $5,000 at completionof construction. Jones built the garage but Smith complained thatJones’s workmanship was substandard and that Jones had failed tobuild the garage to the specifications provided in the contract.Smith refused to make the final $5,000 payment. After Jonesthreatened to sue Smith for the $5,000, the parties came to anagreement that Smith would pay Jones $1,500 and Jones would acceptthe $1,500 as full payment of the contract. Smith paid Jones$1,500, making clear that it was for full payment of the contract,and Jones accepted the payment.

Who is liable to whom for what if Jones decides to sue Smith insmall claims court for an additional $3500?

Who is liable to whom for what if an inspector for Smith’slocality finds the garage is not built to code specifications andorders it to be torn down and rebuilt correctly?

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Jamar Ferry
Jamar FerryLv2
1 Nov 2018

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