What kind of contract do the parties have

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Reference no: EM131861254

The Massachusetts Bay Transit Authority (MBTA) awarded the Perini Corp. a largecontract to rehabilitate a section of railroad tracks. The work involved undercuttingthe existing track, removing the ballast and foundation, rebuilding the track, anddisposing of the old material.

Perini solicited an offer from Atlantic Track & Turnout Co. for Atlantic to buy whatever salvageable material Perini removed. Periniestimated the quantity of salvageable material that would be available. Atlanticoffered to purchase " all available " material over the course of Perini ' s deal with theMBTA, and Perini accepted.

But three months into the project, the MBTA ran short of money and told Perini to stop the undercutting part of the project.

That was thework that made Perini its profit, so Perini requested that the MBTA terminate theagreement, which the agency did.

By that point Perini had delivered to Atlantic onlyabout 15 percent of the salvageable material that it had estimated. Atlantic sued.

What kind of contract do the parties have? Who should win and why?

Reference no: EM131861254

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