Big Co. builds a grocery store. The contract price is $5 million. They incur $4.5 million in costs. On final inspection the grocery store is upset, as the blueprint calls for 24 skylights, but the finished building has only 12 skylights. The grocery store refuses to pay. Big Co. Big Co. sues for the contract price.
a. What is the grocery store's rationale for refusing to pay? Why?
b. What type of contract clause would be helpful to the grocery store's argument? Why?
c. What is Big Co.'s rationale for suing for the contract price? Why?
d. You be the judge? Decide and explain how you reached the decision.