Watkins & Son v. Carrig
Supreme Court of New Hampshire
21 A.2d 591 (1941)
Watkins (plaintiff) contracted with Carrig (defendant) to excavate a basement at a fixed per-unit price that did not account for solid rock; upon encountering rock, Watkins asked for a higher unit price for the rock-removal portions, and the parties orally agreed Carrig would pay substantially more for that work, after which Watkins completed the excavation relying on the new price. When Carrig later refused to pay the higher oral price, Watkins sued and won at trial based on a finding that the oral agreement superseded the written contract; Carrig appealed.
Whether mutual agreement by both parties to pay a higher price for performance already required under an existing contract constitutes a valid rescission of the old contract and formation of a new one.