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Hillman Brothers Construction, Inc. agreed to build a home for Maggie Sykes. The total contract price for the home is $325,000. The home is complete in all respects except for the fact that shutters have not been installed on the windows. The contract between the parties stipulated that Hillman Brothers would install shutters on each window.

The day before the “closing” on the home’s purchase, Maggie noticed that Hillman Brothers had not installed the shutters. She then called the owner, president and chief executive officer of the company, Andrew Hillman, and a heated argument between the two ensued (Maggie is well-known for her “anger management” issues, and she becomes especially angry when her requests as a buyer are not met.) The conversation ended with Andrew proclaiming that “Hades would freeze over” before he had his construction crew install the shutters, and with Maggie asserting that the “deal is off.” Hillman Brothers expects to be paid the full contract price, $325,000, for the home, based on the fact that “irreconcilable differences” between the parties make it impossible for the company to install the shutters, and since Maggie’s incorrigible personality caused the impassible chasm between them. For total “parts and labor,” it would cost $5,750 to install the shutters.

Is Maggie Sykes obligated to purchase the house? If so, is she obligated to pay the full contract price of $325,000? Is Hillman Brothers Construction, Inc. required to install the shutters?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91576450

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