National Lock Co. v. Swords Co.

Mr. Presiding Justice Huffman

delivered the opinion of the court.

Appellee entered into a written agreement with appellant for the construction of a power plant. The contract provided that appellant was to submit to appellee the original invoices from the manufacturers, for all machinery and apparatus used in the construction of said plant. The appellant, by the terms of the contract, was to be compensated by being paid a sum equal to ten per cent on the net cost of the machinery and apparatus so purchased. The contract was in the nature of what is commonly called a cost plus contract — the…