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

Respuesta :

Answer: B) Sally can have the contract discharged based on impracticability

Explanation:

A contract can be legally Discharged if both parties voluntarrily agree to it. It needs to meet certain criteria to be discharged on the basis of IMPRACTICABILITY such as death or illness or an EXTREME BURDEN being created.

The unforeseen circumstances that result in Sally having to pay $32,000 instead constitutes an Extreme Burden and therefore the contract can be discharged on Impracticability.

Sally can have this contract discharged based on impracticability. The answer to this question is option B.

The impracticality of a contract happens when there are events that happen after the contract has been made which makes it difficult to perform.

Before the contract was entered, the company did not inform Sally that there were such rocks at the site. Now that work was about to begin, her cost has increased to twice the amount due to the discovery.

She can have the contract discharged because the new events are no longer with what she signed up for at the beginning.

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