a) What arguments could Chen use to support his refusal to pay John more than the originally agreed upon price? A valid contract that is legally enforceable should consist of an offer, acceptance, intent to bind, and sufficient consideration. Accordingly, the first contract entered into by Chen and John includes John's agreement to build Chen's house extension in exchange for payment of the price of building materials on the date of completion of the contract execution and the cost of labor of $6000 at the time of execution. of the contract. First, Chen must understand that this was the original contract and that both he and John were legally bound by the contract. By changing the terms of the agreement, John made a counteroffer that Chen could use in his justification for withholding payment. This is evident as John has proposed a new contract length requiring a payment of $10,000 or not performing the work as agreed to in the original contract. A counteroffer changes the terms of the original contract, and at this time Chen had the right to terminate the contract because of John's counteroffer. As a matter of fact, it is worth noting that a counteroffer does not exist if the offeree accepts the new terms of the contract as Chen did, but Chen can use it to argue that John had no intention of being bound by the original contract ( Koffman and Mcdonald , 2007). Coercion occurs in a contract when a party is forced to commit to a contract that he or she would not otherwise have wanted to enter into due to blackmail, threats of causing actual harm, and threats to withdraw from the contract upon completion. when it is urgently needed. The two types of coercion that currently exist are physical coercion and economic coercion, and Chen can use econ...... middle of paper ......n argue that failure to complete the contract on time was out of the circumstances that he couldn't control. Furthermore, John can argue that the failure to meet the building's June completion deadline was contributed to by Chens' reluctance to accept the second offer. References Books Adams, A. (2010). Law for economics students. London, UK: LongmanKoffman, L. & MacDonald, E., (2007) The Law of Contract (6th edition): Oxford University Press, McKenDrick, E. (2005). Contract law text. Cases and Materials (2nd edition): Oxford University Press,CasesBank of Australia Limited v Amadio (1983) 151 CLR 447Goldsbrough Mort & Co Ltd v Quinn (1910) 10 CLR 674,Integrated Computer Services Pty Ltd v Digital Equipment Corp (Aust) Pty Ltd (1988) 5 BPR 11.110). Smith v William Charlick [1924] 34 CLR 38 The Mihalis Angelos [1970] 3 WLR 601