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Ptarmigan, a partnership, entered in a contract with Gundersons, the South Dakota Corporation in the business of golf course construction. The contract provided that Gundersons would make a golf course for Ptarmigan for the contract price of $1,294,129. Gundersons straight away started work and completed about 1/3 of work by about three months later, when bad weather forced cessation of most work. Ptarmigan paid Gundersons for work to that date. In the following spring, Ptarmigan ran out of funds and was not capable to pay for the completion of golf course. Gundersons sued ptarmigan and its individual partners to recover the lost profits that it would have made on remaining 2/3 of contract.

Can Gundersons recover such lost profits as damages?

Business Management, Management Studies

  • Category:- Business Management
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