Matilda has a written contract with a builder,

Juan, to build a new factory for $5,000,000 by 30 November. Juan calls Matilda

in March and says that he can no longer build the factory for $5,000,000 as his

costs have gone up. Matilda orally agrees to pay an extra $500,000.

What can Juan do to ensure that the promise to

pay the extra money is enforceable against Matilda?

i. Juan should get Matilda’s

promise in writing along with his signature.

ii. Juan should promise to do

some additional work, such as building a shed behind the factory.

iii. Juan should get Matilda’s

promise in a deed.

iv. Juan does not have to do

anything as a contract can be oral and is not required to be in writing.