Company I entered into a written contract with company N to assemble and install conduits under river R for a price of $149,680. Delays caused by company N forced company I to perform in winter months instead of summer months as originally bid as a result, major change and installation had to be made in the system above specified in the contract. Company N repeatedly assured to pay the additional costs if company I completes the work. The additional cost of company I to complete the work was $811,810.73. But company N signed release and paid only $575, 000 claiming that contract is not binding because it signed it under duress. To discuss: Whether company I is correct.

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Chapter 11, Problem 22CP

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Company I entered into a written contract with company N to assemble and install conduits under river R for a price of $149,680. Delays caused by company N forced company I to perform in winter months instead of summer months as originally bid as a result, major change and installation had to be made in the system above specified in the contract. Company N repeatedly assured to pay the additional costs if company I completes the work. The additional cost of company I to complete the work was $811,810.73. But company N signed release and paid only $575, 000 claiming that contract is not binding because it signed it under duress.

To discuss: Whether company I is correct.

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International Underwater Contractors, Inc. (IUC), entered into a written contract with New England Telephone and Telegraph Company (NET) to assemble and install certain conduits under the Mystic River for a lump sum price of $149,680. Delays caused by NET forced IUC’s work to be performed in the winter months instead of during the summer as originally bid, and as a result, a major change had to be made in the system from that specified in the contract. NET repeatedly assured IUC that it would pay the cost if IUC would complete the work. The change cost IUC an additional $811,810.73; nevertheless, it signed a release settling the claim for a total sum of $575,000. IUC, which at the time was in financial trouble, now seeks to recover the balance due, arguing that the signed release is not binding because it was signed under economic duress. Is IUC correct?

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