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Rex Roofing contracted with the O’Neills to install a new roof on their house for $2,500. Rex began the work and soon realized that he had underbid the job.
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He informed the O’Neills that he would not do the job for $2,500 after all, but that he would complete the work for $3,200. The O’Neills promised to pay him $3,200. Assuming that there were no unforeseen conditions that affected the roof and no obvious mistakes in the bid calculations, was it ethical for Rex Roofing to refuse to do the job at the agreed-upon price? Since the O’Neills agreed to pay the higher price, are they ethically obligated to do so, even if the does not require them to pay more than the originally agreed-upon price?
