Robert W. and Heather J. Green brought a claim for breach of contract against Key Custom Homes, Inc. d/b/a Key Custom Homes “KCH”, arising out of the construction of their home.1 KCH counterclaimed, alleging that it was the Greens who breached the parties’ contract.2 The jury found in favor of KCH, and the Greens appeal from the trial court’s denial of their motion for new trial. Michele and Randy Edmondson are the owners and officers of KCH. Prior to the events at issue, the Greens rented a house from the Edmondsons, and the two couples were friends. In 2006, the Edmondsons agreed to sell the Greens land for the construction of a home, and the parties signed a Real Estate Sales Contract for the land on or about June 16, 2006 the “Sales Contract”. The Sales Contract provided that KCH would “build the Greens’ home on their lot at the cost of building the house plus 10″ and further specified that “all costs related to building the home will be disclosed between both parties, the buyer and the seller. . . .”
On or about July 18, 2006, the parties entered into a second agreement for the construction of the Greens’ home the “Construction Agreement”, which provided that the Greens would pay the cost of building and would also pay KCH “for the performance of work and furnishing of materials, under this Agreement the sum of 10 of the cost to build the house.” The agreement estimated this amount at $17,147.20 to be paid in four installments: 1 60 percent to be paid after the foundation was poured; 2 20 percent at the “dry in phase roof on house w-shingles;” 3 10 percent when the sheet rock was hung; and 4 the balance when county issued the approval on final inspection. The Construction Agreement provided that subcontractors and suppliers would be paid by the Greens from draws on their construction loan. KCH was required to review all invoices before requesting a draw, and the Greens were required to pay KCH within 24 hours in order to comply with “the requirement of the builder to pay the suppliers and the subcontractors on a prompt payment schedule.”
