case analysis:

Digger Excavation Co. entered into a contract with the Township of Langley. It agreed to build a tunnel under city hall in exchange for a total price of $4 million. Shortly after beginning the project, Digger realized that it had entered into a very bad bargain. The job was much more difficult than initially expected. It would cost $12 million to complete. Digger nevertheless carried on in order to protect its reputation. Somewhat surprisingly, however, after half the tunnel had been finished, Langley breached the contract by refusing to give Digger access to the worksite. At that point, the Township had already paid $2 million to Digger, and Digger had already spent $6 million on the project. Another excavation company completed the tunnel under a separate contract with the city.