William Agrees to Drill a Well Up to 200-Feet Deep

question 30

Multiple Choice

William agrees to drill a well up to 200-feet deep for John's rural cabin.The contract price is $3,000.After drilling 100 feet, William strikes solid granite rock.He talks to John and explains that this is highly unusual for the area and could not have been anticipated at the time of entering into the contract.He offers to get a special drill, but says it will cost him more money, so that he will be unable to complete the project for the agreed price.Because John is anxious to have the well, he agrees to pay William an additional $1,000 to complete the job.However, once the well is finished, he changes his mind and now says he will pay only the originally agreed-upon amount.

• A)The parties have agreed to a substitute contract which discharges the original contract.John is obligated to pay the additional $1,000.
• B)Under the UCC, the substitute contract is binding, because there is the payment of additional money.
• C)William is in breach of contract.John need not pay any additional money.
• D)William is under a pre-existing moral duty to perform at the originally agreed-upon price.

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Definitions:

Loyalty Program

A marketing strategy that rewards, and therefore encourages, loyal buying behavior, which is beneficial to the business.

Relationship Marketing

A strategic approach to marketing that focuses on building long-term relationships with customers through customer satisfaction and engagement rather than just focusing on individual transactions.

Relationship Marketing

A strategy focused on building long-term customer relationships through personalized communication and tailored offerings, aiming to increase customer loyalty and lifetime value.

Marketing Mix

The set of controllable marketing variables that a company uses to pursue its desired level of sales in the target market.