Onar Development stopped progress payments to its general contractor, Shape Construction. Upon the advice of their attorney, Shape decided to sue for rescission of the contract rather than collect damages for breach. Shape will most likely

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Since Onar Development has stopped progress payments, Shape Construction may not be able to collect damages for breach of contract, as there may not be any damages to collect. Therefore, Shape Construction may be better off seeking payment under quantum meruit, which is a legal principle that allows for payment for work performed, even if the work was not completed under the terms of the original contract. This could potentially allow Shape Construction to recover some of the costs associated with the work performed, even if the contract is rescinded.

Onar Development Stopped Progress Payments to Its General Contractor, Shape