Sanford Paving was hired to pave the parking lot at Memorial Hospital. Th e work was to commence on June 1, 2010 and fi nish 30 days later. Th ere was a clause in the contract that stated: “Th is contract may not be assigned without the express consent of Memorial Hospital.” Sanford had bid a job with the City and never thought they would get the job. But on June 10, they received the good news. Th e job was worth hundreds of thousands of dollars for them. Sanford did not have time for the hospital job. Sanford contacted his cousin, Vinny who owned Vinny’s Paving and Construction Company. Sanford asked Vinny to do the hospital job and Vinny agreed. When the hospital CEO saw Vinny’s trucks in his parking lot, he was livid. He didn’t hire Vinny’s Paving, but Sanford Paving. Th e CEO called Sanford and told him that he did not agree to Vinny performing the paving work. Sanford assured the CEO that Vinny would do a good job and that he would be personally responsible. Vinny did not fi nish the job until July 31, 2010, over one month after the completion date in the original contract. Th e extra month costs the hospital lost revenues from parking fees and many angry phone calls from staff that had to park off -site. Th e hospital sues Sanford Paving for breach of contract. One of the allegations was that Sanford did not have the authority to assign the contract to another contractor or alternatively, Sanford did not have the authority to delegate the duties of paving to another contractor. Does the hospital have a feasible argument? Would the hospital’s position be weakened if Vinny had fi nished the contract on time? Explain your responses.
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