Reference no: EM131770070

Ramirez was a general contractor who specialized in the building of small commercial buildings. He entered into a contract with Nguyen to build a commercial building in a small retail shopping center. The contract had the following clause: In the event that the builder is late in delivering the building, ready for occupancy, builder will suffer a reduction in contract price of $1500 per day for each day beyond the agreed upon completion date. Completion was scheduled in the contract for December 1 of the current year. The total price of the building was $1,500,000. As of October of the current year the buyer had made payments of $1,200,000 as agreed upon and was due to pay the final $300,000 on the day the building was completed. Ramirez was unable to deliver the building until December 15; 14 days after the agreed upon delivery date. He suffered from a late supplier who held him up for three days and from a worker’s strike that held him up for 11 days. Nguyen paid all of the last payment except for $21,000 for the delayed delivery. Ramirez believes he is entitled to the full amount and has initiated this suit.