Business Law 5th Edition by David Twomey ,Marianne Jennings ,Stephanie Greene

Exercise 5

The Aqua Drilling Company made a contract to drill a well for the Atlas Construction Company. It was expected that this would supply water for a home being constructed by Atlas. Aqua did not make any guarantee or warranty that water would be produced. Aqua drilled the well exactly as required by the contract, but no water was produced. Atlas refused to pay. It asserted that the contract was not binding on the theory that there had been a failure of consideration because the well did not produce water. Was the contract binding [ Atlas Construction Co., Inc. v. Aqua Drilling Co., 559 P.2d 39 (Wyo.)]