Opinion ID: 2124349
Heading Depth: 1
Heading Rank: 11

Heading: Excused performance.

Text: Wisconsin has long followed the doctrine that a material breach by one party excuses subsequent performance by the other party. [33] In the case at bar we conclude that the persistent refusal of the MSC to negotiate an equitable adjustment was a material breach of contract which justified R. W.'s refusal to continue performance without some form of additional financial assistance. The materiality of this breach is established by three factors: (1) the outright refusal of the MSC to act on the changed-conditions claim and to attempt negotiation of an equitable adjustment; (2) the substantial increase in R. W.'s costs caused by the changed conditions; and (3) R. W.'s need for current funding by an equitable adjustment in order to continue the project. However, it must be emphasized that it is only in an extraordinary situation like the present one that the contractor is justified in refusing to perform further. Unless the above factors are present, the contractor should complete the contract even if it disagrees with the MSC's resolution of its changed-conditions claim, and afterwards maintain an action for breach of contract. The contractor cannot be permitted to hold the threat of work cessation over the MSC's head as it is deciding changed-conditions claims. Such a situation would stifle the mutual cooperation in the face of difficult conditions which it is the purpose of the changed-conditions clauses to foster.