William agrees to drill a well up to 200-feet deep for John's rural cabin. The contract price is $3,000. After drilling 100 feet, William strikes solid granite rock. He talks to John and explains that this is highly unusual for the area and could not have been anticipated at the time of entering into the contract. He offers to get a special drill, but says it will cost him more money, so that he will be unable to complete the project for the agreed price. Because John is anxious to have the well, he agrees to pay William an additional $1,000 to complete the job. However, once the well is finished, he changes his mind and now says he will pay only the originally agreed-upon amount. What is the result?

A) The parties have agreed to a substitute contract which discharges the original contract. John is obligated to pay the additional $1,000.
B) The agreement for $4,000 is binding because of provisions of the UCC.
C) William is in breach of contract. John need not pay any additional money.
D) William is under a pre-existing moral duty to perform at the originally agreed-upon price.

Question

Alice McCalister-Hampton · Accepted Answer

Final Answer : A, Explanation :  The parties effectively agreed to a substitute contract when John agreed to pay an additional $1,000 due to unforeseen circumstances (striking solid granite), which made the original contract terms impracticable. This new agreement supersedes the original contract, obligating John to pay the additional amount.

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