Question

Green Bay Construction Company (“Green Bay”) was employed as a general contractor to build a football stadium entry. Green Bay employed Madison Swiss (“Swiss”), subcontractor, to complete the framing, trusses and other carpentry work on the stadium entryway in exchange for payment in the amount of $200,000. The written contract, stated that Swiss was to provide all labor, materials, tools, equipment, scaffolding, and workmanship, that the work was to be completed no later than June 15, 2013, and that when the work was completed Green Bay was to issue full payment.

On June 2, 2013, Swiss’s employees erected 38 trusses at the job site. On June 5, 2013, thirty (32) of the trusses broke, slipped and/or fell off, resulting in structural integrity concerns and problems. The reason for the trusses having fallen was unexplained, and Swiss was hesitant to continue work and fix the trusses arguing that they were deliberately knocked off. Green Bay told Swiss that they would pay Swiss an additional $50,000 to properly install the trusses and continue work. When the job was complete, Green Bay paid Swiss the original contract ($200,000) price but refused to pay Swiss the additional amount of $50,000. Swiss sued Green Bay for $50,000. Can Swiss recover? IRAC your answer.

I:          Under contract law does Green Bay owe Swiss $50,000 when Green Bay, general contractor, agreed to pay Swiss, subcontractor, an additional $50,000 to correct work already performed and to complete the work included in the original contract?

RULE:         

ANALYSIS:             

CONCLUSION:

Answer 1

Rule- In contract law if two parties have contracted to do something for consideration and successfully completed the contract then the party have to pay the price.

Analysis- In this contract even though it was contracted for $200,000 initially and later Green Bay agreed to pay $50,000 extra for fixation of the trusses. Swiss have successfully completed the fixation work too. In no way Green Bay can withhold the payment.

Conclusion- Green bay has to pay swiss $50,000 in any case.