UNIVERSAL BUILDERS V. MOON MOTOR LODGE
244 A.2d 10 (1968)
NATURE OF THE CASE: This was a dispute over a building contract. Moon (D) appealed a
decree awarding Universal (P) the balance due on the parties' construction agreement.
FACTS: Universal (P) entered into a written contract with Moon (D) for the construction
of a motel. The contract was specific about certain specifications. A masonry sub failed to
use the proper specified proportion of a reinforcing substance in building the walls. When
this defect was discovered, D went ballistic and threatened to expel P from the job. P then
entered into a supplemental agreement that stated that P was to pay D $5000 as damages for
the absence of the reinforcing materials, that P will perform additional work as no cost to
D, that the finish date was extended from April 1 to July 1, and liquidated damages at a
specific rate per day to be assessed for any further delays. P finished on September 1 and
left the site October 1. After filing this suit, P went bankrupt. Disputes developed over
additional work done without a written change order as demanded under the contract. P
claimed that D orally authorized the additional work, saw it performed and promised to pay
despite the fact that the revisions were not in writing. The trustee won a final decree in
the lower court for $127,759.54. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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