1. Poole Company enters into a contract to build a pool for homeowner for $20,00
ID: 438084 • Letter: 1
Question
1. Poole Company enters into a contract to build a pool for homeowner for $20,000. During the construction process, Poole discovers the remnants of a big, old, partially buried, tree trunk on the property. Poole can remove it but it will add additional time and cost to the project. Accordingly, Poole asks homeowner for an extra $1000 to complete the job, which homeowner reluctantly agrees to. When the tree trunk is removed and the job is finished, Homeowner only pays the original $20,000. Poole Company sues for the promised additional $1000. The likely result of the lawsuit will be:Answer
Poole will prevail since homeowner clearly breached the promise to pay $1000.
Poole will prevail since it is a fair result since everyone knows how difficult it is to remove old tree trunks.
Poole will prevail since $1000 was very reasonable consideration under the circumstances.
Poole will lose as it gave no new consideration for the promise to pay the additional $1000.
Explanation / Answer
1. Poole Company enters into a contract to build a pool for homeowner for $20,000. During the construction process, Poole discovers the remnants of a big, old, partially buried, tree trunk on the property. Poole can remove it but it will add additional time and cost to the project. Accordingly, Poole asks homeowner for an extra $1000 to complete the job, which homeowner reluctantly agrees to. When the tree trunk is removed and the job is finished, Homeowner only pays the original $20,000. Poole Company sues for the promised additional $1000. The likely result of the lawsuit will be:
Answer
Poole will prevail since homeowner clearly breached the promise to pay $1000.
Poole will prevail since it is a fair result since everyone knows how difficult it is to remove old tree trunks.
Poole will prevail since $1000 was very reasonable consideration under the circumstances.
Poole will lose as it gave no new consideration for the promise to pay the additional $1000.--correct option
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