Business Law: Principles for Today's Commercial Environment 3rd Edition by Marianne Moody Jennings, David Twomey, Marianne Jennings

Exercise 1

The Forsyth School District contracted with Textor Construction, Inc., to build certain additions and alter school facilities, including the grading of a future softball field. Under the contract, the work was to be completed by August 1. Various delays occurred at the outset of the project attributable to the school district, and the architect's representative on the job, Mr. Hamilton, told Textor's vice president, William Textor, not to be concerned about a clause in the contract of $250 per day liquidated damages for failure to complete the job by August 1. Textor sued the school district for breach of contract regarding payment for the grading of the softball field, and the District counterclaimed for liquidated damages for 84 days at $250 per day for failure to complete the project by the August 1 date. What legal basis exists for Textor to defend against the counter-claim for failure to complete the job on time Was it ethical for the school district to bring this counterclaim based on the facts before you [Textor Construction, Inc. v Forsyth R-III School District, 60 SW3d 692 (Mo App)]