Vladimir Constructions contracted to build the Petersons a house for $50,000. When Vladimir began digging the foundation, it hit bedrock, which was highly unusual in that area. Vladimir told the Petersons that it required an extra $5,000 to build the house. The Petersons agreed, but when the house was done, refused to pay Vladimir any more than the original contract price. What can be the outcome if Vladimir sues the Petersons for the extra $5,000 and why?
What will be an ideal response?
Students' answers may vary. Generally, modifications of existing contracts require new consideration to be binding. However, courts have created an exception when the promisor runs into unforeseeable difficulties which make his performance of the contract impossible, impracticable, or unfairly burdensome. In this case, Vladimir Constructions will probably win because it can prove that the existence of bedrock was an unforeseeable difficulty which made the necessary excavation much more difficult and unreasonably more expensive. Therefore, the Petersons will probably be obligated to pay Vladimir the extra $5,000 as they had promised.
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