On February 5, Devon entered into a written agreement with Gordon whereby Gordon agreed to drill a well on Devon’s property for the sum of $5,000 and to complete the well on or before April 15
On February 5, Devon entered into a written agreement with Gordon whereby Gordon agreed to drill a well on Devon’s property for the sum of $5,000 and to complete the well on or before April 15. Before entering into the contract, Gordon made test borings and had satisfied himself as to the character of the subsurface. After two days of drilling, Gordon struck hard rock. On February 17, Gordon removed his equipment and advised Devon that the project had proved unprofitable and that he would not continue. On March 17, Devon went to Gordon and told Gordon that he would assume the risk of the enterprise and would pay Gordon $100 for each day required to drill the well, as compensation for labor, the use of Gordon’s equipment, and Gordon’s services in supervising the work, provided Gordon would furnish certain special equipment designed to cut through hard rock. Gordon said that the proposal was satisfactory. The work was continued by Gordon and completed in an additional fifty-eight days. Upon completion of the work, Devon failed to pay, and Gordon brought an action to recover $5,800. Devon answered that he had never become obligated to pay $100 a day and filed a counterclaim for damages in the amount of $500 for the month’s delay based on an alleged breach of contract by Gordon. Decision?
Persons D and G entered into a written agreement in which amount of $5000 and time limit for completion of work, on or before April 15, was agreed upon by both the parties.
Persons D and G were both familiar with the terms and conditions of the contract. Person G didnot cancel the contract onleaving the project, nordid he modified it with new terms offered by Person D on rejoining the project.At the time of rejoining, the agreement didnot expire.
Denial of payment of $5800 by Person D can be considered valid because it is not mentioned in the agreement and his counter claim can be considered valid as according to agreement,Person G has made a delay in the completion of the project.
The possible decision here could be that Person D's counterclaim can be considered valid with respect to previous agreement between him and Person G because they have neither cancelled the previous agreement nor modified it with new terms of the agreement.