2020/06/01

The Cardinal Change Doctrine

The cardinal change doctrine limits the ability to make significant changes to a project’s scope of work after the contract is signed. This doctrine prevents a contractor or sub from having to perform work that wasn’t initially bargained for.

The ability to identify cardinal changes is an important tool for contractors and subs to protect their rights and ensure they get paid what they’ve earned. Without knowing what is and isn’t allowable, construction businesses can’t be empowered to stand up for themselves when they’re getting yanked around. The cardinal change doctrine grants construction businesses a way out when confronted with a cardinal change.

https://www.levelset.com/blog/cardinal-change-doctrine/


The same person is both the creditor and the debtor

Under the merger doctrine, when the same person is both the creditor and the debtor with respect to a debt, that debt is extinguished.

....In the final analysis, while [The Court] clearly opened the door to application of the merger doctrine in cases where the creditor and debtor are in the relation of corporation/sole shareholder, it did not articulate a clear standard for courts or practitioners to apply in the future in such cases.