804, chap. 22, §§ 3 and 6)


2
Defendant, a corporation of the state of New York, on December 12, 1910, secured a contract with the government of the United States for the construction of a postoffice and court building at San Juan, Porto Rico. A few days later it entered into a subcontract in writing with one Guerini, by the first paragraph of which he agreed: 'To furnish and set in position, including the concrete backing, all the imitation of sandstone, and to construct the interior concrete walls, concrete floors, concrete roof, backing the granite construction, enclosing all the I beams . . . agreeable to the drawings and specifications made by the said architect (copies of which have been delivered to the subcontractor), and to the dimensions andfoot surface. The three above items to be at the option of the general contractor. . . .'


6
Thereafter the plaintiff corporation was formed under the laws of Massachusetts, and Guerini transferred the contract to it. Defendant was notified of this, expressed satisfaction in writing under date February 20, 1911, and thereafter dealt with plaintiff as subcontractor.


7
At a later time, defendant exercised the third only of the options given to it by the 25th paragraph.


8
The plan of the building contemplated a foundation of concrete and piles, which was to be constructed by defendant complete to the basement floor; above this a basement story, surfaced with granite blocks to be furnished by defendant (as a practical matter, to be sent from the United States) and to be set in position