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52. In a breach of contract action by the engineer against the developer, which party will likely prevail?
The engineer submitted a completed feasibility study and master plan to the developer. Despite the engineer's best efforts, however, the county did not approve the project. Because of this outcome, the developer refused to pay the engineer for any of the engineer's services.
An engineer and a real estate developer entered into a written professional-services contract. The contract stated that in return for $10,000, the engineer was to «complete a feasibility study and a master plan, and use best efforts to obtain county approval of the [developer's planned] project.»
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A is incorrect. There is no such express condition. Under the rule of constructive conditions of exchange, the performance by one party is an implied condition of performance by the other party. Since the engineer performed all contractual obligations as promised, the developer breached by refusing to perform its contractual obligation to pay the engineer.
B is incorrect. The engineer did not breach the contract. The engineer only had a contractual obligation to «use best efforts to obtain county approval,» not to succeed in obtaining county approval.
D is incorrect. There is no express condition. The engineer only had an obligation to «use best efforts to obtain county approval,» and that obligation was performed.