Wholesale Sand & Gravel v. Decker

Wholesale Sand & Gravel (plaintiff) contracted to build Decker's (defendant) gravel driveway, verbally telling Decker it would finish in a week even though it believed it had ninety days under the contract. Wet ground caused delays, and rather than complete the work within the contract price, Wholesale removed its equipment and, despite promising Decker three separate times that it would return, never resumed. Decker eventually terminated the contract, and Wholesale sued for breach; after judgment for Decker, Wholesale appealed.

Whether a party to a contract may cancel it when the other party's conduct gives it reason to believe that party will not perform.