Question

Bill and Emily entered into a contract whereby Bill promised to build an apartment building for Emily for $100,000, with progress payments of $9,000 a month. Honest differences arose after five months over whether landscaping was extra or within the contract terms. Emily suggested that the issue be resolved by her promising to pay Bill an additional $5,000 upon Bill's current promise to do, and eventual completion of, the landscaping as set forth in the plans. Bill agreed. Assume that Bill does the landscaping. If Emily can prove that landscaping was within the terms of the original contract:

She need not pay the extra $5,000 for her promise to do so is unenforceable.

She must pay Bill the extra $5,000 because she entered into a valid accord with Bill.

She must pay Bill the extra $5,000 because she entered into a valid novation with Bill.

She must pay Bill the extra $5,000 because she entered into a valid substituted performance agreement with Bill.

Please answer the multiple choice questions. Only choose one answer choice. Then write an IRAC answer about the issue that is being tested.

Answer 1