Wednesday, December 25, 2013

Branco Enterprises, Inc. v. Delta Roofing, Inc. case brief

Branco Enterprises, Inc. v. Delta Roofing, Inc. case brief summary
886 S.W.2d 157 (1994)

CASE SYNOPSIS
Defendant subcontractor, a roofing company, appealed the decision from the Circuit Court of Greene County (Missouri), which entered judgment in the breach of contract suit by plaintiff contractor based on an oral bid for a roofing project. The subcontractor contended that there was no unequivocal acceptance of the bid and no unequivocal promise by the subcontractor.

CASE FACTS
The contractor accepted bids on a construction project. The subcontractor submitted the oral bid. The contractor presented evidence that it relied on the bid by the subcontractor in obtaining the general contract. The subcontractor decided not to get the bid largely because it had not received certification to use a new type of material on the roof. No documents were ever executed by the parties.

DISCUSSION

  • The appellate court affirmed, holding that the contractor was entitled to damages based on the doctrine of promissory estoppel. 
  • There was a promise to perform, reliance by the contractor in proceeding on its aspect of the project, and injustice absent enforcement because the contractor had to obtain a new subcontractor for the roof at a higher price. 
  • The fact that there was no written contract was not controlling. The oral commitment was sufficient.

CONCLUSION
The judgment in favor of the contractor was affirmed on appeal.


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