Modular Homes

What is the name of your state? CA
my sister needs help, she signed a contract and paid all monies, for a modular home, (money sitting in escrow) including foundation, porch and permits. now they are trying to make her sign a new contract for more money, she will not sign he will not deliver home or do the work already signed for in the contract. Can she request her monies be returned or does she need to take him to court for not abiding by the contract? thanks.

[I AM ALWAYS LIABLE]

Originally posted by KEKUCALA
What is the name of your state? CA
my sister needs help, she signed a contract and paid all monies, for a modular home, (money sitting in escrow) including foundation, porch and permits. now they are trying to make her sign a new contract for more money, she will not sign he will not deliver home or do the work already signed for in the contract. Can she request her monies be returned or does she need to take him to court for not abiding by the contract? thanks.

My response:

Is this a true "mistake" by the home seller; i.e., how much is the difference in price?

Was there some necessary "cost" that was not accounted for in the original contract?

Is this just a matter of having used the wrong figures in the cost of the home?

IAAL

the cost went from 80,933 to 82,636. the new contract he now wants her to sign includes fire safety, fire spinklers, and project drawings, this will be in excess of the 82,636, but he will not disclose those cost. he just says it will be billed at a later time. we can find nothing in the contract where figures were incorrect, he cannot accout for the change in price.

[I AM ALWAYS LIABLE]

Originally posted by KEKUCALA
the cost went from 80,933 to 82,636. the new contract he now wants her to sign includes fire safety, fire spinklers, and project drawings, this will be in excess of the 82,636, but he will not disclose those cost. he just says it will be billed at a later time. we can find nothing in the contract where figures were incorrect, he cannot accout for the change in price.

My response:

Okay, what is known is a $1,700.00 difference, and apparently, those costs are for "municipal code" requirements. Since these appear to be required by some legal fiat, then the costs therefor fall onto the shoulders of the buyer. As such, with those requirements, it appears there was an "honest" mistake to fail to include those costs. As such, the contract is enforceable as against her due to the mistake; i.e., the extra costs do not appear to be for extra profits or commissions, but rather, for necessary items.

However, as for the other items of costs, insist on a final accounting before re-signing. You are entitled to a completed contract prior to signing. It doesn't matter that you can, or cannot, find anything in the contract where the figures are incorrect. The fact remains, under basic principles of contract law, and of Appellate law, that if a bonefide "mistake" has been made by one party, then the contract is still enforceable.

You can sue for rescission of the contract; however, in this type of situation, where costs are necessary due to municipal code requirements, the builder can counter-sue you for "reformation" of the contract, and more than probably win because the corrections do not "present such an egregious mistake that it amounts to an arbitrary remaking of the contract between the parties."

Good luck.

IAAL