Question: After picking up his first progress payment for $ 6 , 0 0 0 from Sally, Larry paused outside Sally s office and overheard a

After picking up his first progress payment for $6,000 from Sally, Larry paused outside Sallys office and overheard a conversation with her shop fabricator Bill. Sally said to Bill, GC Contractors is behind on payments. If they dont come current with the payments for the city library, I cant afford to pay the bills. Concerned he would not be paid, Larry walked to his truck and never returned the project site.
Sally was in a tight spot, she needed a painter to finish painting the exterior sheet metal panels. Bill the fabricator held a C-33 Painting and Decorating license and offered to finish the painting work for $15,000. However, Sally wanted to help her nephew Clem get a painting business started, so she gave him a contract for $20,500 for the work.
Who was in material breach of the contract, Sally or Larry? Explain why. Discuss both Larry and Sally.
Assume Larry was in material breach of the contract with Sally. How much can Sally recover from Larry? Explain why; e.g., what is Sallys duty? Show your calculations.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!