New River Contracting vs. Old Dominion Equipment Company: A Breach of Contract Case - Prof, Papers of Civil Engineering

Download New River Contracting vs. Old Dominion Equipment Company: A Breach of Contract Case - Prof and more Papers Civil Engineering in PDF only on Docsity! Michael Luciani 9/1/08 CEE 4804 Case 1: NEW RIVER Contracting vs. OLD DOMINION Equipment Company Overview Who: Plaintiff – New River Contracting Defendant – Old Dominion Equipment Company What: The plaintiff brought legal action against the Defendant for breaching a contract requesting damages for the difference between the bid amount and the actual cost. When: March and April 2006 Where: Southbury School Cottages, Virginia Key Facts March 30: Defendant sent letter to Plaintiff with bid of $144,500 April 8: Bids were open by the state of Virginia April 13: Contract was awarded to Defendant for the bid price April 14: Defendant adjusted its original bid to $154,500 Could not afford to do the job at the original $144,500 price April 15: Defendant received a contract after winning the bid, but refused to sign it Refused to sign it because the contract was for $144,500 not $154,500 Legal Issues Common Law -Money damages Equity Law -Injunction -Reformation Findings In this case I see both side’s arguments are legit; however, I will have to side with the Plaintiff. The Defendant big on a job that they said they could perform with the price they had suggested. The Plaintiff could have offered them the job with the higher price, or could have given it to another company that would have done the job for less. Since the Defendant did not sign any legal documents, it is hard for the Plaintiff’s case to hold up in court. Relevance The Laws we have been studying in class are very relative to this case. Common Law and Equity Law play a big part in this case. (Lecture Notes) Lesson(s) Case 1: It is difficult in business to trust other people, so always have a backup plan or make sure they sign legal papers before counting on them.