Sanders Construction Co. v. San Joaquin First Federal Savings & Loan Ass'n

*391 Opinion

Respondent Sanders Construction Company, Inc. (Sanders Construction) and appellant San Joaquin First Federal Savings and Loan Association (S&L) entered into an agreement providing for the construction of a building on land belonging to Sanders Construction and the leasing of the major portion of same to S&L.

S&L appeals from a judgment against it for damages and against it on its cross-complaint against Sanders Construction.

Factual Background

Sanders Construction owned an unimproved lot in Modesto upon which S&L wanted to build a branch office. The presidents of the two corporations, Art Sanders of Sanders Construction and Bill Chapman of S&L, negotiated in late 1976 and early 1977 for a lease arrangement under which Sanders Construction would construct a building on its property for occupancy by S&L. During these discussions the parties agreed upon the description of the premises, the terms, the rental amount, the building costs, and that appellant’s architect would design the building.

Further facts will be developed as required.

Mutual Assent

The agreement went through the usual changes and revisions. After execution by S&L, Sanders Construction suggested…