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United States Court of Appeals for the Fourth Circuit - 2002 WL 479767, 32 F. App'x 673
Tags: Contracts, Duress, Economic duress
tl;dr:
A general contractor and subcontractor entered into a memorandum of understanding ("MOU"). They then executed a revised MOU, but one of the companies claimed it accepted the revised MOU under economic duress.Video Summary
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Centech contracted with the Navy to convert microfiche personnel records into digital form and subcontracted I-NET to design and develop a data conversion system. After Centech became delinquent in its performance, Centech and I-NET entered into a memorandum of understanding (MOU) stating that I-NET would assume liability for performance of the prime contract from Centech. When they were unable to agree to a novation or substantial restructuring, they entered into a new MOU superseding all previous agreements. The Revised MOU stated that I-NET would assume full liability for timely and satisfactory performance and delivery of services and indemnify Centech against all contractual claims and losses arising from any failure to perform such services. Centech is suing I-NET for breach of the Original MOU and the Revised MOU, claiming that I-NET failed to provide Centech with the required teaming and bidding opportunities. The district court granted summary judgment for I-NET on Centech's claim under the Original MOU because it had been abrogated by the Revised MOU, which superseded all previous agreements. The district court rejected Centech's claim that the Revised MOU was not a valid contract. Centech has appealed.
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