Sam Agreed to Manufacture and Supply 25 Specially Adapted Computers

Essay

Sam agreed to manufacture and supply 25 specially adapted computers for Joe to use for simulated horse racing in his string of hotels throughout the province. Unfortunately, after Sam almost completed the computers, the province passed a law prohibiting the manufacture and sale of this kind of machine. Joe had paid a deposit of $5000, but Sam had incurred $30,000 of expenses in manufacturing these machines. The total purchase price agree upon between these parties was $50,000. Joe sued Sam for the return of his $5000 deposit. Sam, in turn, sued Joe for a contribution towards his loss. Discuss the legal position of the parties.