Williston on Contracts Case Study Example | Topics and Well Written Essays - 500 words

Williston on Contracts - Case Study Example Within a few days after the completion of the agreement, the plaintiff learned that the Government had lessened the amount of asphalt that was predetermined under the contract by around the number of tons of lessening supposed in the complaint. The defendant was directed by the plaintiff advised of its receipt and on the contention that the lessening of asphalt considered under the contract would augment the unit cost in the act of the contract. The defendant replied to the plaintiff confirming the plaintiff’s information concerning the reduction of asphalt required under the contract and promising to submit to the proper Government officials’ requests for increased unit prices. The defendant’s letter was acknowledged and the plaintiff signed its intention of proceeding with performance of the contracts as changed, and express confidence that defendant would adequately present to the Government the plaintiff’s request for an increase in unit prices for wor k under the contract. The defendant later wrote to the plaintiff saying that it had received from the Government a change order providing for the changes in the original contract that resulted in the reduction of the asphalt required The plaintiff sought to recover the expenses incurred in shipping the large asphalt plant to the place of performance of the work and in installing and equipping the plant for the production of 50,000 tons of asphalt. Further, there was a demand for dismantling and returning the asphalt plant to the point from which it was shipped as damages for breach of the contract. RATIONALE: The fundamental basis for an award of damages for contravening a contract is just compensation for losses necessarily flowing from the breach (Lord, 1338). In addition, while the breach of contract gives rise to a right of action, it is nevertheless possible for a breach to occur without causing damage.