Stone, Sand & Gravel Co. v. United States - 234 U.S. 270 (1914)
U.S. Supreme Court
Stone, Sand & Gravel Co. v. United States, 234 U.S. 270 (1914)
Stone, Sand & Gravel Co. v. United States
Argued April 23, 1914
Decided June 8, 1914
234 U.S. 270
Where the contract contains a provision for a method of annulment and liquidated damage in case of a breach by failure to commence work and the government avails of that provision, it is only entitled to the liquidated damages and cannot recover damages for difference in cost on reletting the contract under a provision for failure to complete or abandonment after commencing the work. United States v. O'Brien, 220 U. S. 321, distinguished.
The benefit and burden of a provision in a government contract giving a right to annul in consequence of a breach by failure to commence work must hang together, and the government cannot avail of the former without accepting the latter.
195 F. 68 reversed.
The facts, which involve the liability of a contractor and its surety under a contract with the government for excavation work, are stated in the opinion.