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Contracts Keyed to Farnsworth
New England Structures, Inc. v. Loranger
Facts
Plaintiff contracted with Defendant, a subcontractor, to install a roof on a school. The contract provided that the Defendant would provide sufficient skilled workers to perform the work, and a failure to do so would constitute grounds for Plaintiff to terminate the contract. Plaintiff telegraphed Defendant that Defendant had failed to provide workers according to the agreement, and gave five days’ notice that it was terminating the contract. Defendant replied that the delays were the fault of the Plaintiff. Plaintiff prevented Defendant’s workers from continuing the work, and hired another subcontractor to complete the job. Plaintiff sued Defendant for the difference in cost between the contract price and the cost to complete the work. Defendant sued Plaintiff for breach of the subcontract. The trial court found in favor of the Defendant in both cases. The Supreme Court of Massachusetts reversed.
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