Rich & Whillock v. Ashton Development Case Study

wealthy & Whillock v. Ashton Development - Case Study ExampleIn a meeting, persons at the helm of affairs of generative & Whillock, Inc Bob Britton Inc, and the Ashton Development, Inc unanimously decided to blast the brandish discovered. Clearly, the contract price of $112,990 did not include ruinous costs. However the contract stated any rock encountered will be considered an extra at current renting rates (Rich & Whillock, Inc Vs. Ashton Development, Inc). Rich and Whillock estimated that an additional $60,000 was required to remove the rock, increasing the total contract price or so to $172,000. Rich and Whillock informed Britton that the actual cost might be higher than the estimated cost due to the freakish nature of the rock. Britton agreed Rich and Whillock to pay the extra costs arising out of the rock work and order them to go on the with the work. Rich and Whillock proceeded with the rock work and submitted invoices, and received payments at the demolition of ever y week. They brisk separate invoices for the regular contract work, and the extra rock work supported by employee time sheets. Although Whillock asked Britton if he needed any clarification regarding any of the billings by the end of April, Britton had no doubts and directed Whillock to continue with the rock work.As described by Gibbs and Hunt (2010), after receiving a total payment of $190,363.50 by seventeenth June, Rich & Whillock Inc submitted the final invoice amounting an additional $72,286.45. After consulting with Ashton officials, Britton refused to pay the money stating that Ashton Development, Inc was short on pecuniary resource and had little money left to pay that amount (p.738). Britton had no objections about the work done until he received that final invoice. In addition, Britton had not asked for accounting of charges prior to the receipt of the final invoice. Whillock told Britton that his company would end up in closure unless that final invoice was paid, becau se Rich & Whillock Inc was a new company. As the tramp was a huge