You have agreed to paint your neighbor's house a lovely shade of chartreuse for $1500 and discover much to your dismay that the house has a second floor. Now you're faced with the prospect of buying a ladder or scaffolding or a really long handled brush, not to mention the 15 more gallons of paint that will be needed to cover. You won't get another penny for what will surely be increased efforts since your neighbor transferred risk with a:

Question

Quizplus · Accepted Answer

A fixed price contract means that the agreed upon price will not change, regardless of any unforeseen circumstances. Therefore, even though the project has become more difficult with the discovery of a second floor, the price remains the same and the risk has been transferred to the contractor (in this case, the painter).

You Have Agreed to Paint Your Neighbor's House a Lovely