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(n):

Question

Quizplus · Accepted Answer

A fixed price contract means that the agreed-upon price cannot be changed regardless of any additional work required or any unforeseen circumstances that may arise. The neighbor transferred the risk to the contractor by agreeing to a fixed price, so the contractor is responsible for any extra costs required to complete the job.

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