Slodder Construction Co Entered into a Contract with the City

question 29

Essay

Slodder Construction Co entered into a contract with the City of Lowey. It agreed to build a tunnel under city hall in exchange for a total price of $5 000 000. Shortly after beginning the project, Slodder realized that it had entered into a very bad bargain. The job was much more difficult than initially expected. It would cost $15 000 000 to complete. Slodder nevertheless carried on in order to protect its reputation. Somewhat surprisingly, however, after half the tunnel had been finished, Lowey breached the contract by refusing to give Slodder access to the worksite. At that point, the city had already paid $2 500 000 to Slodder, and Slodder had already spent $7 500 000 on the project. Before trial, another construction company completed the tunnel under a separate contract with the city. Is Slodder entitled to receive any more money from the city in the form of expectation damages or reliance damages? Explain your answer. Is there any other basis upon which Slodder can claim a remedy from Slowey? If so, how much will that remedy be worth? Explain your answer.

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Definitions:

Drug Therapy

The treatment of disease or symptoms with pharmaceutical drugs, which can involve antibiotics, antivirals, analgesics, and other types of medication.

Lymphatic System

A network of tissues and organs, including lymph nodes, vessels, and fluid (lymph), that helps rid the body of toxins, waste, and other unwanted materials, playing a key role in immune function.

Physiology

The branch of biology that studies the functions and mechanisms occurring in living organisms.

Signaling

The process by which cells communicate with each other through molecules to perform various functions.