Contract Law Formation F-IRAC Business Law

Stacey Smith owns a lot in
the hills of Pennsylvania and wants to build a house according to a particular
set of plans and specifications. She solicits bids from bidding contractors and
receives 2 bids: one from Carlton for $260,000 and one from Feldberg for
$258,000. One night, while having a drink with friends during happy
hour Stacy is telling her friends about her desire to build this home and her
uncertainty of the costs associated with the project. Siegel, although laughing
with others at the table, had heard Stacey’s story and leaned across the table
and said, “you are being taken for a ride because you are a lady. If
you let me, I will build your house for half of that price, no more than
$125,000!“ Delighted, Stacy jumps on the offer and says I accept. I
will have money for you tomorrow to get started. The next day Siegel
shows up at the property and Stacey pays him a $100,000 down payment to cover
most of the construction costs One month after beginning construction of the
house, Siegel contacts Smith and tells her that because of inflation and a
recent price hike for materials, he will not complete the construction unless
Smith agrees to pay an extra $150,000. Smith reluctantly agrees to pay the
additional sum. 4 months later Smith has an unfortunate accident resulting in
her death. Stacy’s only son, Tom wants the construction completed.

Tom, Stacey’s sole survivor and her very mature and intelligent
17 year old son, who graduated from high school early and is a Senior in
College, where he has completed his business law class, wants to continue live
in the new home under construction, but wants to turn the property into a horse
breeding ranch and build a 16 unit stable. He contacts Siegel who learns that
Tom is about to graduate from college. As Siegel prepares the contract for Tom,
he asks, “You are old enough to do this right?” Tom agrees he is a senior in
college and signs an additional contract for the completion of a 16 unit stable
for $65,000, due upon completion. A year later the Stable Project is
completed, and Siegel asks for his final payment of $65,000. Tom
never replies, and finally file suit for recovery of his $65,000.

Is there a valid contract between
Stacey & Siegel? Is Siegel obligated to complete the project, and at what
price?

Do not discuss
contract questions of Agreement – offer and acceptance, or Consideration.

Using
F-IRAC consider the Contract Formation questions for this contract between Tom
& Siegel.

Please make sure to use F-IRAC form. 1500+ words – about 1000 of the words should be the analysis. We were asked not to use any outside sources, strictly from our knowledge. I attached a powerpoint of the lesson. Please be sure to include the laws that are being used in the RULE. Thanks!