Superior-Plus Properties,Inc.,and Topps Construction Company sign a contract that specifies the amounts to be paid for a building project at various stages and on its completion.Additional compensation may be justified by

Question

Quizplus · Accepted Answer

The contract specifies the amounts to be paid for the building project at various stages and on its completion. Therefore, any changes in the market price of materials during the contract should have been taken into account when the initial contract was signed. Business obstacles that arise after the time of the contract can be considered as part of the risks and uncertainties that come with any project, and should not automatically lead to additional compensation. However, if there are extraordinary difficulties that were unforeseen at the time of the contract, such as unforeseen geological conditions, then additional compensation may be justified.