View the step-by-step solution to:

What happens according to law in Canada if two parties agree and sign a contract, but after some time party one demands extra money in order to

What happens according to law in Canada if two parties agree and sign a contract, but after some time party one demands extra money in order to fulfill the demanded production and party two agrees to pay that extra amount if the product is delivered on time, but when the pay date comes the second party disagrees to pay the extra amount and only agrees to pay the amount stated in the original contract?


"Hogtown Hotels Inc (HHI) is about to open a new hotel in Toronto. HHI plans to open on June 1, 2018. HHI has a contract with Evyl Empire Ltd (EEL) for the purchase and sale of beds and linens for the new hotel. Pursuant to this contract, EEL is supposed to deliver the beds and linens on May 23. It is important that HHI receive the beds and linens on time in order to ensure that the hotel is ready to open its doors on June 1. On May 3, EEL contacted HHI to advise HHI that it had oversold its inventory of beds and linens. EEL told HHI that it would not have any beds or linens available for delivery until June 8. Alternatively, the representative of EEL explained that it could make beds and linens available IF HHI was willing to pay a higher price. If HHI agreed to pay the higher price ("Price 2"), then EEL said that it would be able to deliver the beds and linens on time. Because HHI plans to open on June 1 and cannot afford to wait for new beds and linens, HHI promises to pay Price 2, the higher price. EEL delivered the new beds and linens on May 23. HHI signed for the beds and linens. However, when the bill came, HHI refused to pay the increased price. Instead, it submitted the original price it had agreed to in its contract with EEL. EEL was furious and it has demanded that HHI honour its promise to pay Price 2. EEL has threatened to sue HHI if it does not keep that promise."

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question