Question

Scenario: Trask Well Company agreed to drill a well for water on Kinley's property for $20,000. Kinley wanted the water for feeding some livestock on the property, and this fact was discussed by the parties. Kinley made a down payment of $5,000 before drilling began. The parties’ written contract made no reference as to how deep Trask Well was to drill, but it did stipulate that the water recovered must flow at a rate of at least 12 gallons (55 L) per minute or no money would be paid for the drilling. After several weeks of drilling, Trask Well did find water, and it flowed at a rate of 15 gallons per minute. However, the water was found to be quite salty. Accordingly, Kinley refused to pay the remaining $15,000. Trask Well sued for that amount. Question: - What is the main legal issue? - What is a possible defence(s)? - Discuss the likely outcome of this case. - What is ONE risk reduction strategy? (from the perspective of either party)

Answer 1

The main legal issue in this case is that Kinley is unwilling to pay the remaining $15,000 to Trask Well Company for digging the well it required. This is non-abidance to the contract which states the rate of flow of water to be 12gallons per minute and Trask Well found water which was flowing at 15 gallons per minute, but was salty.

The defense that Tarsk Well can state, that first the contract was to dig a well to have 12 gallons per minute water speed. To which their present water flow rate supersedes. Secondly, there is no mention of type of water in the contract. Thirdly, it is not Tarsk Well's fault that the water turned out to be salty.

The most likely outcome, the court would rule in favor of Tarsk Well Company and Kinley would have to pay the remaining $15,000 to the former.

Risk reduction strategy:

From, Tarsk Well Company, understanding the need of Kinley, they must have suggested Kinley to conduct a salinity test prior to digging.

From Kinley's perspective, they must conduct a salinity test which indicates whether the water is sweet or salty from the soil's salinity, prior to digging the well