Construction is awarded a contract by the City of Metropolis

Importance of a ContractACME 

Construction is awarded a contract by the City of Metropolis to perform a street paving and drainage improvement project.  ACME, in turn, contracts with Ready Mix Company, a ready mix concrete supply company, to supply concrete for the job.  The City’s specifications required that the concrete meet 4,000 PSI compressive strength.  The City’s specifications were part of the contract that ACMEConstruction agreed to.The City’s Engineer prepared a mix design for the concrete mix.  The mix design was transmitted to ACME Construction who passed it on to the Ready Mix Company.  There is no written contract between ACME Construction and Ready Mix Company.  Ready Mix Company supplied concrete meeting the design mix prepared by the City’s Engineer.During construction, compressive tests indicated that the concrete was not meeting 4,000 PSI.  Construction was stopped, and the City’s Engineer recommended additional changes to the mix.  Ready Mix Company complied with the changes to the mix.  Thereafter, on 13 occasions, concrete supplied by Ready Mix Company failed to meet the 4,000 PSI test.  The City assessed a penalty of $3,676.80 and deducted that amount from payments to ACME Construction.  ACME Construction hen refused to that amount to Ready Mix Company.Ready Mix Company sues to obtain the balance due on their contract, $3,676.80.

•Should ready Mix Company be able to collect the balance of $3,676.80?

•What did Ready Mix Company contract?  i.e., what was the scope of their contract?

•What could have been done to avoid this dispute?

Please read and research the best solution to the problem.  Once your research is completed, please upload a 1 page summary answering the three questions at the bottom of the assignment.