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Oak Ridge Construction v. Tolley

504 A.2d 1343 (1985)

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Oak Ridge Construction v. Tolley

Pennsylvania Superior Court

504 A.2d 1343 (1985)

Facts

The Tolleys hired Oak Ridge Construction (Oak Ridge) to build a house on their land. Due to the depth of nearby wells, Oak Ridge was forced to dig the Tolleys’ well deeper than anticipated. Oak Ridge charged the Tolleys extra for this additional depth. Upon receiving the invoice, the Tolleys wrote to Oak Ridge, stating that the charges were “in dispute or disagreement” and asking for arbitration of the charges. Oak Ridge ceased performance and gave notice that it was terminating the contract pursuant to its termination provision. The trial court ruled that the Tolleys anticipatorily breached the contract, thus justifying Oak Ridge’s termination of the contract. The Tolleys appealed.

Rule of Law

Issue

Holding and Reasoning (Hoffman, J.)

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