Universal Builders v. Moon Motor Lodge

244 A.2d 10 (1968)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Universal (P) entered into a written contract with Moon (D) for the construction of a motel. The contract was specific about certain specifications. A masonry sub failed to use the proper specified proportion of a reinforcing substance in building the walls. When this defect was discovered, D went ballistic and threatened to expel P from the job. P then entered into a supplemental agreement that stated that P was to pay D $5000 as damages for the absence of the reinforcing materials, that P will perform additional work as no cost to D, that the finish date was extended from April 1 to July 1, and liquidated damages at a specific rate per day to be assessed for any further delays. P finished on September 1 and left the site October 1. After filing this suit, P went bankrupt. Disputes developed over additional work done without a written change order as demanded under the contract. P claimed that D orally authorized the additional work, saw it performed and promised to pay despite the fact that the revisions were not in writing. The trustee won a final decree in the lower court for $127,759.54. D appealed.