Wayne Burningham (defendant) hired Ronald Bradshaw (plaintiff) to drill a well for Burningham. Under the contract, Bradshaw was to receive $35 per foot for drilling the well. However, if Bradshaw ran into problems that slowed down the drilling process, Bradshaw was to receive $50 an hour instead. In fact, after he began drilling, Bradshaw ran into a metal object that prevented Bradshaw from completing the original well. Instead, Bradshaw drilled a well for Burningham in a different location. Burningham and Bradshaw entered a compromise agreement regarding how much Burningham owed for the first attempt. Under the compromise agreement, Bradshaw would receive $6,300 for the work done on the first well. The compromise agreement incorporated parts of the original contract and stated that the original contract held except for the changes the compromise agreement provided. When Burningham did not pay the $6,300, Bradshaw sued Burningham. Bradshaw asked the court to award damages based on the original contract’s rates rather than the compromise agreement’s $6,300. The trial court held that both parties were bound by the compromise agreement and awarded Bradshaw $6,300. Burningham appealed.