Contracts Essay 2

CONCORD LAW SCHOOL OF KAPLAN UNIVERSITY CONTRACTS ESSAY 2

Able operated a 10 acre parcel of land. Able grew soybeans on 5 acres of the parcel and the remaining 5 acres were vacant. Able decided to plant soybeans on the vacant 5 acres, but he realized he would need an additional water source for the new crop. He entered into a contract with Baker whereby Baker was to dig a well on Able’s property.

The written agreement stipulated that Able would pay Baker $3,000 upon completion of the well. After digging for several days, Baker struck solid rock and was unable to dig any deeper with his present equipment. Baker had been digging wells in the area for over 10 years and had never experienced or heard of striking solid rock before reaching an adequate source of water. Baker telephoned Able and told him that in order to continue digging the well he would have to rent additional and more powerful equipment that would cost $1,000 and asked Able to pay that amount.

Able told Baker that he needed the well completed and reluctantly agreed to pay the additional $1,000. Baker rented the additional equipment and finished the well two days later. One week after the well was completed Able noticed a strong odor emanating from the well. Able called Baker to complain about the odor, but Baker had no explanation as to why there was an odor.

After checking with some neighboring property owners, Able discovered that the odor was common in the area and not the result of anything Baker had done improperly when digging the well. Because he was upset by the foul odor, Able sent Baker a check for $2,500 marked “payment in full” on the front. Baker crossed out the “payment in full” inscription and cashed the check.

1. Did Able and Baker validly modify their contract when Able agreed to pay the additional $1,000? Discuss.

• Able and Baker did the right thing when he had to modified their contract when they both agreed that Baker would need to another $1000 to dig the well. At the...