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Rex Roofing formed a contract with the ONeills for installation of a new roof on their house The price of the contract was 2500 After the work had begun Rex realized that he was not charging enough for the job and informed the ONeills that he could not complete it The ONeills agreed to pay a higher price of 3200 We will through the analysis of prior case precedents state our opinions as to whether it was ethical for Rex to refuse to do the job at the original price and if the ONeills are ethically obligated to pay more than the original contracted price Case Precedent 1 Drennan v Star Paving Co 51 Cal 2d 409 L A No 25024 In Bank Dec 31 1958 William Drennan plaintiff a licensed general contractor submitted a bid on the Monte Vista School Job for a paving job Before Drennan could submit the bid Drennan asked for bids from subcontractors to do the paving work Of all of the subcontractors who submitted bids Star Paving Co came in with the lowest bid Star Paving Co bid the paving job at 713160 Mrs Johnson Drennans secretary repeated the bid to make sure that the bid amount was correct and was confirmed by Mr Oppenheimer who was Star Paving Cos construction engineer Drennan compiled his costs 317 38500 including Star Paving Cos bid on his proposal to Monte Vista School Drennan told Star Paving Co that if awarded the project they would be awarded the subcontract On July 28 1955 Drennan was awarded the project The next morning Drennan stopped by Star Paving Co and found out that the bid amount was a mistake and the job had to be done at 15000 Drennan told the subcontractor that the work had to be done as agreed upon at the price of 713160 The court found on substantial evidence that Star Paving Co made a definite offer to do the
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