Contracts

Question 1

Does an unforeseeable even discharge a party’s duty to perform?

Answer 1

No

Question 2

What is promissory estoppel?

Answer 2

provides that a promise that the promisor should reasonably expect to induce action or forbearance on the part of the promisee, and which does induce such action or forbearance, is binding if injustice can be avoided only by enforcement of the promise.

Question 3

In construction contracts, what is the standard measure of damages when a builder breaches after partial performance?

Answer 3

The owner is entitled to (1) the cost of completion plus (2) reasonable compensation for any delay in performance.

Question 4

When is the cost of completion not awarded in a construction contract breach?

Answer 4

When completion would cause undue economic waste (i.e., the cost is grossly disproportionate to the benefit).

Question 5

Can a breaching builder recover for the work already performed?

Answer 5

Yes. Most courts allow the builder to offset or recover the value of work done to avoid unjust enrichment of the owner.