Question

Sarah and Randy made a contract where Randy would remodel Sarah's bathroom for $20,000. Sarah had until July 10 to pay for it. Randy finished the work and Sarah seemed happy with it. A day before payment was due, Sarah realized there was an issue with the bathroom and contacted Randy. She asked him to come fix it; however, Randy refused. Sarah informed Randy that she was not going to pay him the full amount. Sarah wrote her check on July 10 for $19,000. Randy cashed the check and sought to collect the balance.

At trial, the most likely result is _____________________:
a) that Randy will win because there was not a good-faith dispute and he cashed the check.
b) that Randy will win because there was a good-faith dispute and he cashed the check.
c) that Randy will lose because there was a good-faith dispute and he cashed the check.
d) that Randy will lose because there was not a good-faith dispute and he cashed the check.

Answer 1

The correct answer is the option C: That Randy will lose because there was a good-faith dispute and he cashed the check.

Step-by-step explanation:

To begin with, the term known as "Good-faith dispute" in the field of law refers to an stated clause that is put on the contracts that involves the provision of a service or the sale of a good from one party to another in exchage of a determine amount of money and in which situation the party that had to delivered the product or service did it incorrectly or in a way that was not complete so in that case the other party who needed to pay has the right to withhold the payment until it is all fixed up. And since Randy collected the money then he will lose at trial due to that clause.