In my view, Charlie has no legal ground to get out of paying the contract. Though he signed original contract, which was a valid and enforceable contract, it is nullified by a second contract —the amendment. Unfortunately for Charlie, his own knowledge and cooperation work against him in this matter.
In many cases, contractors will adjust a bill and include additional charges that may have been briefly mentioned or hinted at without thoroughly discussing them. There are, certainly, incidentals that occur with any project. The legality of tacking on additional charges that weren't initially agreed upon is dubious at best, but it is most often left unquestioned, so many contractors get away with it. If this were the case, Charlie would have some legal footing.
Unfortunately, Charlie was fully aware of the necessary changes. He willingly chose to nullify the first contract because of the importance of the deadline. When it was presented to him as impossible without hiring additional help for $2,000, Charlie had, at that time, every right to object to paying the additional sum. Since the first contract was valid and enforceable, he could have forced Paul to take on the additional expense himself and complete the project on the deadline. The first contract gave Charlie more power, because the price was fixed and the deadline was set—all he had to do was enforce it.
However, because Paul came to him with a counter-offer halfway through the job, Charlie lost the ability to say that he was being unlawfully charged or that Paul was breaking their contract. In fact, at that time, Charlie could have simply forced Paul to continue. But, by signing the amended contract, Charlie bound himself legally to the fact that he knew of the charges in advance and willingly accepted them. Now this contract gives Paul more power, and Charlie is bound legally by it. Therefore, he must pay.
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