Zoe Hired Shiny Pool Co

question 29

Essay

Zoe hired Shiny Pool Co.to install a swimming pool on her property for $13,000.They both thought the soil and subsoil were normal for the area,but after they started digging,Shiny found a layer of rock that required them to rent a special piece of equipment from a drilling company.Two extra days of work were going to be necessary.Shiny demanded an extra $4,000 to complete the job.Discuss whether Zoe is liable for the additional $4,000.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuer, which may differ from its market value.

Cash Dividend

A payment made by a company out of its earnings to its shareholders, usually in the form of cash.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.

Legal Obligation

A duty enforced by law that requires an individual or entity to conform to specific conduct or refrain from certain actions.