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Silverite Construction Co. v. Montefiore Medical Center

Citations: 239 A.D.2d 336; 657 N.Y.S.2d 196; 1997 N.Y. App. Div. LEXIS 4595

Court: Appellate Division of the Supreme Court of the State of New York; May 5, 1997; New York; State Appellate Court

Narrative Opinion Summary

In this breach of contract case, the plaintiff appealed two orders from the Supreme Court of Nassau County. The first order granted the defendants' motion for summary judgment, dismissing the plaintiff's first and second causes of action. The second order denied the plaintiff's motion for leave to reargue, which was dismissed as non-appealable. The appellate court affirmed the dismissal, finding no enforceable contract due to the clear intent of both parties not to be bound without a formal, executed agreement. The plaintiff's preliminary tests did not constitute partial performance because they were conducted under separate work orders, not as part of a binding agreement. Furthermore, the parties failed to agree on essential contract terms, such as overtime pay and early completion bonuses, which lacked an objective standard, further supporting the decision that no contract existed. Consequently, the plaintiff's claims were dismissed, and the respondents were awarded one bill of costs.

Legal Issues Addressed

Essential Terms and Contract Enforceability

Application: The absence of agreement on essential contract terms, such as overtime pay and early completion bonuses, rendered the contract unenforceable due to the lack of an objective standard for these terms.

Reasoning: Additionally, the parties did not reach agreement on essential contract terms, such as overtime pay and early completion bonuses, which lack an objective standard for determination.

Formation of Contract and Intent to be Bound

Application: The court held that the parties' explicit intention not to be bound until a formal contract was executed precluded the formation of a binding agreement, supporting the dismissal of the plaintiff's breach of contract claims.

Reasoning: The appellate court affirmed the April 22 order, emphasizing that parties intending not to be bound until a formal, executed contract exists will not be bound in its absence.

Partial Performance and Contract Formation

Application: The plaintiff's preliminary tests did not constitute partial performance of a contract because they were conducted under separate work orders and were not part of any binding agreement.

Reasoning: The plaintiff's argument that preliminary tests conducted constituted partial performance was rejected, as these tests were requested under separate work orders for project scope assessment, not as part of a binding agreement.