Topic: Contracts

By: Michele Buthusiem and Chris Reading. Byron

Key Words

Duress

Breach

Unlawful pressure exerted upon a person to coerce that person to perform an act that he or she ordinarily would not perform.

Failure to perform a contract – failure to do one’s duty.

Summary

Strickland did cable work for AT&T for years. AT&T contracts were Strickland's major revenue source. On one project, the contract set Strickland's payment as 23.5 percent of "total project cost.“ AT&T stated the total project cost to be $6.5 million, but one AT&T document indicated that it may have been $7.2 million. A conflict over which amount was to be used, AT&T indicated that if Strickland wanted more business in the future, it should agree to the lower amount. Strickland sued for breach of contract and for economic duress.

Strickland won the case and $173,000 for breach and $470,601 damages on its economic duress claim. AT&T appealed.

Decision