Sally Has Just Purchased a Home and Wants to Have

question 15

Multiple Choice

Sally has just purchased a home and wants to have an in-ground pool installed. She calls Cool Pools, the company that put in her neighbors' pools. When the company rep comes to her property, he does some soil tests that are standard for the industry and gets the same results as he got when the other pools were put in, so the company gives her a price quote of $16,000. When Cool Pools begin excavating, it discovers solid rock 4 feet below ground level. The neighbors had no such rock. Cool Pools stops work and informs Sally that it will have to use explosives to remove the rock and the cost of the pool will now be $32,000.

• A) Sally is under contract and will have to pay the new price.
• B) Sally can have the contract discharged based on impracticability.
• C) Sally can have the contract discharged based on impossibility.
• D) Sally can have the contract discharged based on frustration of purpose.

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Definitions:

Goldsmiths

Historically, craftsmen who made objects out of gold, but in financial history, they are known for keeping gold deposits and issuing paper bank notes redeemable for gold.

Medium Of Exchange

An intermediary instrument or system used to facilitate the sale, purchase, or trade of goods and services between parties.

Reserve Ratio

The portion of depositors' balances that banks must have on hand as cash, a regulatory requirement meant to ensure bank stability and liquidity.

Total Deposits

The sum of all money that is deposited in a bank's accounts by its customers.