Question

Jade is developing a leisure centre in time for the Christmas holiday andhe contracts. with Oluchi to undertake the installation of a swimming pool. Oluchi contracts with Kelvin to supplypipesto build the pool. Oluchi begins work aftertwo weeks of signing the contract, but a month later she informs Jade that she will not be able to complete the work because of the steep increase ni the cost of materials. Jade agrees ot pay more than was originally agreed, so that Oluchi can obtain the materials needed tocomplete the pool ontime. Whenthe work isfinished Jade refuses to pay the extra N100,000.00 Sixmonths affer SWIMSAFE supplied the pipes, the company has still notbeen paid by Oluchi. Both Oluchi and SWIMSAFE are now requesting payment from Jade. Advise Jade Whether she must pay Oluchi the extra N100,000.00 and SWIMSAFE for the pipes. Jade is developing a leisure centre in time for the Christmas holiday andhe contracts. with Oluchi to undertake the installation of a swimming pool. Oluchi contracts with Kelvin to supplypipesto build the pool. Oluchi begins work aftertwo weeks of signing the contract, but a month later she informs Jade that she will not be able to complete the work because of the steep increase ni the cost of materials. Jade agrees ot pay more than was originally agreed, so that Oluchi can obtain the materials needed tocomplete the pool ontime. Whenthe work isfinished Jade refuses to pay the extra N100,000.00 Sixmonths affer SWIMSAFE supplied the pipes, the company has still notbeen paid by Oluchi. Both Oluchi and SWIMSAFE are now requesting payment from Jade. Advise Jade Whether she must pay Oluchi the extra N100,000.00 and SWIMSAFE for the pipes.

Answer 1

Jade may not be obligated to pay Oluchi the extra N100,000.00, but she may be responsible for paying SWIMSAFE for the pipes. Legal advice is recommended.

Step-by-step explanation:

Jade may not be obligated to pay Oluchi the extra N100,000.00 if it was not specified in the contract. Contracts are legally binding agreements between parties, and the terms and conditions should be clearly outlined. If the increase in cost was not discussed and agreed upon in writing, then Jade may not be required to pay the extra amount.

On the other hand, Jade could be held responsible for paying SWIMSAFE for the pipes if Oluchi had a valid agreement with SWIMSAFE to supply the pipes for the swimming pool construction. It is important for Jade to review the contract between Oluchi and SWIMSAFE to see if Oluchi was authorized to make the purchase and if the payment terms were clearly stated.

It is recommended that Jade seeks legal advice to fully understand her obligations and rights in this situation.