Engineer E and Owner O are engaged in contract negotiations for E to design and build...

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Engineer E and Owner O are engaged in contract negotiations forE to design and build a building for O. The proposed contract isfor $200,000. The estimated duration of the turnkey project is 15months. After reaching an oral agreement of the above, O tells Ethat they should get together over the next few weeks to hammer outthe contract language details for a formal written contract. Ebegins work without notifying O and completes approximately 30% ofthe design work (at a cost of $3000) when negotiations break offover "technicalities." When E indicates work has already begun, Oorally tells E to stop work as they cannot reach an agreement. E'sbudget estimated a $12,000 profit for E for the project. Assume forthis question that the design/build turnkey project is NOTseverable.
1. E sues O for the entire $200,000. Who wins, what, andwhy?
2. ADDITIONAL FACTS: O mails a check for $3,000 to E with aletter stating that the check is "to cover your costs for the workperformed under our canceled agreement for the $150,000 project." Esues O for the remaining $197,000. O countersues asking for thereturn of the $3,000. Who wins, what, and why?

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As we all know oral commitments promises does not hold any base in law of court A legal contract agreement has to be in place in order to claimask for any belongings Legal contract has to be signed mutually by both the parties on the agreed points only the clauses agreed in the agreement will hold good can be claimed by law In this case E O engaged into a See Answer

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