Question
In May of 2015, John, of John's Speed Shop decided that his shop needs to expand in order to meet a newly entered contract obligation
In May of 2015, John, of John's Speed Shop decided that his shop needs to expand in order to meet a newly entered contract obligation to enhance 1,000 military rapid response vehicles for the United States Army. As such, he sought bids from contractors to add 50,000 square feet of shop space to his existing business operations. Since the work on the contract must start no later than July of 2018, John chose Walton's Building Services to erect the addition. The contract specified that the building must be completed by March 1, 2018, and that the specified payment was set at $3,500,000. $500,000, for material, would be paid upfront along with $1,000,000 as a first installment. The remaining $2,000,000 would be paid in two installments. The second is due by the midpoint and the third is due upon completion. At the midpoint, John was pleased by the progress and quality of work and gladly instructed his controller to submit the $1,000,000 installment. Shortly thereafter, Walton's Building Services began to suffer when its CEO, George, began to undergo medical treatments for a debilitating disease. As a result, the company was not able to complete the building by March 1, 2018. Because of this, John hired Lincoln Log Joe to complete the work. John sought bids from several sources, and Lincoln Log Joe presented the lowest bid at $2,000,000. Was there a contractual discharge, a breach of contract, and if so, what remedies exist?
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