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The city of Kalamazoo hired Good Builders, Inc., to build a new courthouse for...

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monroe31 | eNotes Newbie

Posted October 14, 2013 at 11:05 PM via web

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The city of Kalamazoo hired Good Builders, Inc., to build a new courthouse for $560,000. Good Builders had barely broken ground when the city notified them that it would not be able to pay for the building after all and asked Good Builders to stop all work. Good Builders refused saying, "Hey, you guys signed a contract. We know our rights." At the time the city asked them to stop, Good Builders had expended $5000 on materials, approximately $3000 of which could have been returned at no loss to themselves. By completing the project, however, Good Builders expended an additional $400,000. In a breach of contract action by Good Builders against the city, how much money do you think the court should award Good Builders? Why?

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