Yazoo Construction Co Ltd Agrees with Zelda Holdings on 1

question 16

Multiple Choice

Yazoo Construction Co Ltd agrees with Zelda Holdings on 1 January to build an office block, completion due by 31 December. On 1 June, Yazoo contracts with subcontractor Xerxes Co Ltd to provide for the electrical network within the building for £1.5 million, completion due by 30 November. By 1 October, it becomes clear to Xerxes that it cannot complete the work on time. Xerxes estimates that it could never have completed the work within five months for the stipulated price, and that it should have either contracted for completion within eight months for the agreed price or should have raised its asking price by £250,000. Wendell, the owner of Yazoo Construction, agrees to pay Xerxes an additional £250,000 out of his own funds on the condition that the work is completed no later than 30 November. Xerxes completes the job on time. Is the promise to pay an additional £250,000 enforceable?

• A) Yes, it is supported by consideration.
• B) No, Xerxes has merely promised to do what it was already obliged to do under the original contract.
• C) Yes, Wendell will be estopped from going back on his promise.
• D) No, promissory estoppel cannot create a new cause of action.

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Definitions:

Positivist Theory

A school of thought in sociology that asserts that societal behaviors and phenomena should be studied through empirical observation and the scientific method.

Phenomenological Theory

A philosophical approach that emphasizes the study of conscious experience from the first-person perspective, aiming to understand the essence of phenomena.

Positivist Sociologists

Sociologists who use empirical evidence and scientific methods to study society and its functions.

Causes

Factors or conditions that bring about or significantly contribute to the occurrence of an event, behavior, or condition.