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A 'Release' Is A Contract, Requires Adequate Consideration

Tuesday, May 01, 2012 04:42 am

 

Contract Consideration -- Liability

L & W Supply Corp. v. D'Aurizio Drywall & Acoustics, Inc., 2012 U.S. Dist. Lexis 27186 (W.D. Okla. March 1, 2012)

Although a signed release may have lacked adequate consideration, promissory estoppel allowed a general contractor to rely on the promises the release made.

L&W Supply Corporation (L&W) furnished materials to subcontractor D'Aurizio Drywall & Acoustics, Inc. (D'Aurizio) on a middle school construction project in the City of Choctaw, Oklahoma. During the project, D'Aurizio became insolvent and failed to pay its suppliers, including $255,000 allegedly owed to L&W. Eventually, Boldt Construction Co., Inc. (Boldt), the general contractor, paid L&W $108,000, claiming this amount satisfied the balance due. Boldt and its surety then moved for summary judgment, alleging that a release L&am [...]

 
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