Shelby hired Evan to drill a well on her property for $3,000. They both thought the soil and subsoil were normal for the area, but after he started drilling, Evan found a layer of rock that required him to purchase a special drill and required an extra ten hours of work. Evan demanded an extra $1,000 to complete the job. Discuss whether Shelby is liable for the additional $1,000.

What will be an ideal response?


The general rule is that a promise to do something the promisor is already obligated to do is not consideration. Therefore, under the general rule Shelby would not be liable for the extra $1,000, since Evan was already obligated to drill the well for $3,000. However, under an exception to the general rule, when unforeseen circumstances cause a party to make a promise regarding an unfinished project, that promise is generally valid consideration. Even though Evan was only promising to finish what he was already obligated to do, his promise to finish the well was valid consideration because neither he nor Shelby knew of the rock and he faced a situation quite different from what the parties anticipated when they entered into the contract.

Business

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