Question

Toby agreed to build a hog confinement facility for Pork USA. The contract between Toby and Pork USA required: That work begin on or before May 1, 2016, weather permitting, or on the next day for which construction was practicable after that in the event of bad weather. The contract specified that time is of the essence to assure that the project was done before Fall. In fact, a freak spring snowstorm occurred on April 30, and Toby couldn't start construction until May 5. That Toby obtain a construction permit before any work could commence.That in order for Toby to obtain monthly construction payments, Toby would be required to submit inspection certificates from the county engineer's office. That once the construction certificate is present, payments would be issued immediately. That Toby will reduce the contract price by the amount of money it receives from a special state construction incentive program, provided Pork USA makes application to the state on or before June 1. Pork USA fails to make the necessary application.

Assume that Toby's delay in starting work made Pork USA doubt he was committed to the contract. Pork USA accuses Toby of a breach of contract and says the contract is cancelled, and demands that Toby return a $25,000 construction deposit paid by Pork USA. Toby doesn't  dispute that he breached the contract, but  claims that Pork USA owes him at least $25,000, since he spent a lot of time planning, arranging for workers, applying for permits, and ordering supplies. Will a court side with Pork USA or with Toby? Explain.

Answer 1

Answer:

Background:

• Toby agreed to build a hog confinement facility for Pork USA and a contract work out for the same.
• Toby's delay in starting work made Pork USA doubt that Toby was committed to the contract.
• Pork USA accuses Toby of a breach of contract and says the contract is cancelled, and demands that Toby return a $25,000 construction deposit paid by Pork USA.
• Toby doesn't  dispute that he breached the contract, but  claims that Pork USA owes him at least $25,000, since he spent a lot of time planning, arranging for workers, applying for permits, and ordering supplies.

The court will take side with Toby, because of the following reaosns

• There was a contract discussion and agreement between the Pork USA and Toby for the agreed project work.
• The Pork USA took longer time to cancel the contract,as during this time the Tiby has organized various works which are required in the start of the project.
• Toby has already started on the work by planning, resource arrangement , equipment organizing etc. Thus Toby has a;ready started the work and started investmemnts for the upcoming work. So Pork USA needs to pay Tobyfor his work in support of the contrcated project.
• While cancelling the contract of a project, the perosn who cancels the contract needs to paid the charges of the contrcator.

So the court will take the side of Toby because Toby was right and he did not made any mistake as per contrat, but it is the Pork USA who was not confident in Toby and had cancelled the contract. Since there is no mistake from Toby for the givencontract work and the he had already invested around $ 25000 for teh priejct, so he is right and the Pork USA who revised their decision and cancelled the order withoit paying the contractor for the work he had done for the project. Thus court will nt support Pork USA, but will support Toby.