Slodder Construction Co Entered into a Contract with the City

question 18

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 million.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 million 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 $2.5 million to Slodder,and Slodder had already spent $7.5 million 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:

Delivery Ex-Ship

Delivery Ex-Ship (DES) is a term used in international trade that indicates the seller is responsible for delivering the goods to a designated port and the buyer is responsible for unloading.

Risk Of Loss

A legal principle determining who bears the financial burden if goods are damaged, destroyed, or lost during a transaction.

Types Of Title

Distinct legal rights to own, use, and manage property, including full ownership and leasehold.

Risk Of Loss

Refers to the legal responsibility for the damage, destruction, or loss of property, which can shift from seller to buyer under various conditions in a sale.