Two subcontractors sued a prime contractor for breach of oral contracts relating to a municipal winter road maintenance contract.
The plaintiffs alleged their arrangements to supply trucks and operators were for the same five‑season duration as the contractor’s agreement with the municipality, while the defendant argued the arrangements were terminable at will.
The court held that the parties’ conduct, including deposits corresponding to the five‑year municipal contract and payment structures flowing from that contract, objectively demonstrated fixed‑term agreements.
The defendant’s termination after one season constituted breach of contract.
Damages representing lost profits for the remaining four seasons, subject to mitigation, were awarded.