Case ID: us-ct-cl_49/html/0689-01.html
Source: Caselaw Access Project
Author: {"author": "Mr. Justice Day", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

UNITED ENGINEERING & CONTRACTING CO. v. THE UNITED STATES.
    [47 C. Cls. R., 489; 234 U. S. R., 236.]
    
      On the defendants' appeal.
    
    The defendants by their delays prevent the completion of the work within the contract time, but the contractors fail to complete the work within a reasonable time. The question in the case is this: When the defendants by their own negligence prevented performance and thereby waived the time limit, did the same operate to eliminate the date from which to assess the liquidated damages?
    The court below decides:
    I. The liquidated damages agreed upon by the parties for nonperformance within a designated time can not be considered by the court as the actual loss or damages for nonperformance within a reasonable time.
    
      II. Where delay caused by tbe defendants tools place after tbe contract work began the time limit of tbe contract was waived, and tbe contractors were bound only to complete tbe work witbin a reasonable time. Where tbe contractors failed to complete tbe work witbin a reasonable time tbe defendants are entitled to only actual damages. Tbe decisions bearing upon these questions of law reviewed and tbe distinction between this case and cases where tbe time limit was not waived and tbe contractor was entitled only to a sufficient length of time to complete tbe work stated.
    III. Provisions in a contract requiring the contractor to furnish all details essential to carry out tbe intention of tbe parties and to assume all risks can not be extended so as to cover án accident caused by tbe defendants.
    The decision of the court below is affirmed.
   Mr. Justice Day

delivered the opinion of the Supreme Court June 8, 1914.