Nina, an experienced pool contractor, and Charlie, a homeowner, agree on a price for Nina to build a pool in Charlie's backyard. While the area is not known for rocks, Nina unexpectedly encounters a significant problem with solid rock in the backyard when she starts to dig. She tells Charlie that unless she receives an extra $5,000, she cannot complete the job. Charlie agrees, thinking to himself that he has a way out. When Nina finishes the pool, Charlie refuses to pay the additional $5,000. Which of the following is the most likely result of their dispute?
A) Charlie will be required to pay because a typical, unilateral contract is involved, and he got the benefit of his bargain.
B) Charlie will be required to pay because a typical, bilateral contract is involved, and he got the benefit of his bargain.
C) Charlie will be required to pay because unforeseen circumstances are an exception to the preexisting duty rule.
D) Charlie will not be required to pay because he provided no additional consideration, and the preexisting duty rule applies.
E) Charlie will only be required to pay ½ of the agreed upon amounts because of the calculations involved under the preexisting duty rule.

Question

Quizplus · Accepted Answer

Unforeseen circumstances that significantly alter the performance of a contract, such as encountering solid rock where none was expected, can be an exception to the preexisting duty rule. This allows for the modification of the contract (in this case, the additional payment) without new consideration, provided the circumstances were truly unforeseen and significantly impact the contract's execution.

Nina, an Experienced Pool Contractor, and Charlie, a Homeowner, Agree