Breach of Contract
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Added on 2020-02-05
Breach of Contract
Added on 2020-02-05
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1.Identify the alleged breach of contract, i.e. what term in thecontract may have been broken.a)What is Performance of Contract?The term ‘Performance of contract’means that both, the promisor, and the promisehave fulfilled their respective obligations, which the contract placed upon them. Forinstance,Avisits a stationery shop to buy a calculator. The shopkeeper delivers thecalculator andApays the price. The contract is said to have beendischarged by mutualperformance. (http://accountlearning.com/performance-of-contract-meaning-types-of-performance/) b)Definition of Breach of contract I.Failure, without legal excuse, to perform any promise which forms thewhole or part of contact. (Black’s Law Dictionary page No. 235).II.If the one of the parties to a contract fails to perform as required by thecontract, this may constitute abreach of contract. Abreach of contractmayentitle the innocent party to make a claim fordamagesfor the losses it hassuffered. If thebreach of contractis serious (a material breach), then theinnocent party may also consider that it is discharged from any furtherobligations under the contract.(https://www.designingbuildings.co.uk/wiki/Breach_of_contract) C) Analytical and legal view of this case. Breach of Contract in Construction Contract i.Defective workmanshipThe House of Lords held that the owner could recover damages fordefective work even though the owner suffered no actual damages as thebuilding have been sold for full value before the damage was discovered.(Lindon Guarden Trust vs Lenesta Sludge Disposal Ltd (1993) 3 AIIER 417.)ii.Failure on the part of contractor
The overwhelming majority of claims for breach of construction contractinvolve cases where a contractor fully performs the contract but the workallegedly contains defects. Construction defect claims give rise to avariety of recoverable damages depending on the scope of the project,the nature and extent of the defect, and the extent to which the defectdeprives the owner of use of its property or interrupts the owner’sbusiness. Construction projects vary enormously in scope, from a simpleresidential remodeling project on the one end, to massive multi-billiondollar public works projects on the other end. Regardless of the type orscope of construction project involved, construction defect damagesconsistently fall within either one of two categories: (1) direct damages,composed of the loss in value to the non-breaching party of the otherparty’s performance caused by its failure or deficiency; and (2)consequential damages caused by the breach. In rare cases, punitivedamages are recoverable, but only when the breach of contract isaccompanied by a violation of traditional common law duties, such asfraud or conversion (http://www.lawcjb.com/breach-of-contract-claims-in-construction-cases/)E) The Term “Satisfactory” have been broken in this contract.The Chris was agreed to get the arrears amount on satisfactory completion of thework. Mr. John was not satisfied with the work of Chris so he rejected the workand alleged that the painting was substandard. i.Legal analysis of word satisfaction.A contract may be contingent upon the satisfaction of the other party.The measuring of satisfaction can be explained in contract.It was said where a contract is required to be done to the satisfactionof one of the parties, the meaning necessarily is, that it must be done ina manner satisfactory to the mind of a reasonable man. (Keeler v. Clifford, 165 Ill. 544, 46 N.E. 248 (1897)2.Considered Damages awarded to John
In breach of this contract the following damages may be awarded to the JohnDirect Damages: In construction defect cases, as with any defectiveperformance case, the difference between the value to the injured party of theperformance that it should have received and the value of what, if anything, itactually did receive is recognized by contract law as the loss in value. Consequential Damages: An award of damages at common law in a contractaction is designed to place non-breaching parties in the position they would haveenjoyed had the contract been performed. Schedule Related Damages: Timely completion of large construction projectsdepends upon the correct sequencing and interfacing of the work of numerouscontractors and trades. Owner Delay Claims: If a contractor is at fault for a delay in construction ofthe project, the owner may seek redress under several damage theories. Generally,an owner’s consequential damages arising from delay by a defaulting contractorcover:Delays in completion of construction projects may result in various consequentialdamages that are not amenable to proof. Contractor Delay Claims: A delay claim is the most common action assertedby contractors to recover additional costs incurred on a project. A contractor maybring a traditional delay claim against another contractor or owner whose acts oromissions caused the contractor’s work to be delayed. Inducement is the cornerstone of a claim for acceleration, and absent inducement,a mere acceleration does not entitle a party to recover damages. (http://www.lawcjb.com/breach-of-contract-claims-in-construction-cases/)3.Can John Claim the restitution claim to recover the 1000 hehas already paid.a)legal status of the Restitution claimThe law of “restitution of unjust enrichment” (to give it its full title was given its firstmodelling by Lord Goff and Professor Jones in 1996 and based broadly on the US
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