Preston v. Verplex Co.

The defendant had a prime contract with the United States government for the manufacture of incendiary bombs. It entered into a subcontract with the plaintiff for work to be performed by the latter on suspension lugs, which were essential parts of these bombs. On August 15, 1945, the day after the surrender of Japan, the prime contract was cancelled by the government and the subcontract was cancelled by the defendant. Plaintiff and defendant are agreed that the former is entitled to $625 for work in process. The plaintiff claims in addition $1472.51 over and above the amount paid for the…