Next Generation Bar Exam Quiz
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CONTRACTS
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Rico contracted with Apex Builders to renovate his restaurant. The written contract set a price of $120,000 and required completion by August 1. In July, Apex told Rico that because its material costs had risen, it would stop work unless Rico agreed to pay an additional $40,000; in return, Apex would install a new HVAC system that was not part of the original contract. Rico had no time to find another contractor before his scheduled opening and signed the amendment. Apex installed the HVAC and completed the renovation. Rico later refused to pay the extra $40,000, and Apex sued.
Which legal issue is most significant in determining whether Rico must pay the additional $40,000?
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