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33. Does the contractor have valid legal grounds to cancel the contract with the excavator and hire a replacement?
On March 1, an excavator entered into a contract with a contractor to perform excavation work on a large project. The contract expressly required that the excavator begin work on June 1 to enable other subcontractors to install utilities. On May 15, the excavator requested a 30-day delay in the start date for the excavation work because he was seriously behind schedule on another project. When the contractor refused to grant the delay, the excavator stated that he would try to begin the work for the contractor on June 1.
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A is incorrect. Expressions of doubt by a party as to its willingness or ability to perform do not amount to the affirmative manifestation of intent required to constitute an anticipatory repudiation. Expressions of doubt on one party's part may, however, give the other party the right to demand adequate assurance. Restatement (Second) of Contracts §§ 250 cmt. b, 251.
B is incorrect. A mere request to delay beginning the work by the excavator, who had reasonable grounds for making the request, is not a violation of the implied covenant of good faith and fair dealing. Restatement (Second) of Contracts §§ 250, 251.
C is incorrect. The contractor's cancellation of the contract would be wrongful and would entitle the excavator to monetary damages (anticipated profit), but not specific performance, which is available only where monetary damages are inadequate. Restatement (Second) of Contracts §§ 250, 359.