Homer v. Shaw
Supreme Judicial Court of Massachusetts
98 N.E. 697 (Mass. 1912)
Subcontractor Lancaster, needing cash, assigned Homer (plaintiff) half his fee under his mason-work subcontract with general contractor Shaw (defendant) in exchange for an advance; Shaw accepted the assignment, but Lancaster later told Shaw he lacked the funds to pay his workers and complete the job, prompting Shaw and Lancaster to form an entirely new contract meeting Lancaster's financial needs, which Shaw testified rescinded the original agreement. Homer sued Shaw for half of Lancaster's fee under the new contract, and the trial court ruled for Shaw.
Whether the original parties to a contract that has been partially assigned may rescind that contract and form a new one when unforeseen circumstances render the assignor's performance impossible.