Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

تمرين 15

K G Construction Co. was the owner of and the general contractor for a housing subdivision project. Harris contracted with the company to do excavating and earthmoving work on the project. Certain provisions of the contract stated that (a) K G was to make monthly progress payments to Harris; (b) no such payments were to be made until Harris obtained liability insurance; and (c) all of Harris's work on the project must be performed in a workmanlike manner. On August 9, a bulldozer operator, working for Harris, drove too close to one of K G's houses, causing the collapse of a wall and other damage. When Harris and his insurance carrier denied liability and refused to pay for the damage, K G refused to make the August monthly progress payment. Harris, nonetheless, continued to work on the project until mid-September, when the excavator ceased its operations due to K G's refusal to make the progress payment. K G had another excavator finish the job at an added cost of $450. It then sued Harris for the bulldozer damage, alleging negligence, and for the $450 damages for breach of contract. Harris claims that K G defaulted first, having no legal right to refuse the August progress payment. Did K G default first? Explain.