Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 5

Oldenstedt was a subcontractor on a new store for Kmart. In its contract, Oldenstedt agreed to supply adequate personnel, material, and equipment at all times to meet the project schedule, and to cooperate with the contractor in scheduling and performing the work to avoid conflict, delay in, or interference with others' work. Oldenstedt started work over two weeks late. The project supervisor told it several times and wrote several letters stating that the work was going too slowly and that it was in breach of the subcontract. Oldenstedt was given another month to complete the work, but it fell significantly behind again. Finally, the supervisor hired someone else to finish the work and to correct deficient work by Oldenstedt. The supervisor then canceled the contract with Oldenstedy and Oldenstedt sued for breach of contact. Had Oldenstedt substantially performed and therefore was entitled to payment under the contract? Explain.