Cengage Advantage Books: Fundamentals of Business Law 9th Edition by Roger LeRoy Miller

Exercise 8

Case Problem with Sample Answer Just Homes, LLC (JH), hired Mike Building Contracting, Inc., to do $1.35 million worth of renovation work on three homes. Community Preservation Corp. (CPC) supervised Mike's work on behalf of JH. The contract stated that in the event of a dispute, JH would have to obtain the project architect's certification to justify terminating Mike. As construction progressed, relations between Mike and CPC worsened. At a certain point in the project, Mike requested partial payment, and CPC recommended that JH not make it. Mike refused to continue work without further payment. JH evicted Mike from the project. Mike sued for breach of contract. JH contended that it had the right to terminate the contract due to CPC's negative reports and Mike's failure to agree with the project's engineer. Mike moved for summary judgment for the amounts owned for work performed, claiming that JH has not fulfilled the condition precedent-that is, JH never obtained the project architect's certofication for Mike's termination. Which of the two parties involved breached the contract? Explain your answer. [ Mike Building Contracting Inc. v. Just Homes , LLC, 27 Misc.3d 833, 901 N.Y.S.2d 458 (2010)]