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Toby agreed to build a hog confinement facility for Pork USA.The contract between Toby and Pork USA required: That work begin onor before May 1, 2016, weather permitting, or on the next day forwhich construction was practicable after that in the event of badweather. The contract specified that time is of the essence toassure that the project was done before Fall. In fact, a freakspring snowstorm occurred on April 30, and Toby couldn't startconstruction until May 5. That Toby obtain a construction permitbefore any work could commence.That in order for Toby to obtainmonthly construction payments, Toby would be required to submitinspection certificates from the county engineer's office. Thatonce the construction certificate is present, payments would beissued immediately. That Toby will reduce the contract price by theamount of money it receives from a special state constructionincentive program, provided Pork USA makes application to the stateon or before June 1. Pork USA fails to make the necessaryapplication.

Assume that Toby's delay in starting work made Pork USA doubt hewas committed to the contract. Pork USA accuses Toby of a breach ofcontract and says the contract is cancelled, and demands that Tobyreturn a $25,000 construction deposit paid by Pork USA. Tobydoesn't  dispute that he breached the contract,but  claims that Pork USA owes him at least $25,000,since he spent a lot of time planning, arranging for workers,applying for permits, and ordering supplies. Will a court side withPork USA or with Toby? Explain.