Building Law and Regulation Question 2022

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Running head: BUILDING LAW AND REGULATION
BUILDING LAW AND REGULATION
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Name of the university:
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Question 1
1. Legal Principles
In this scenario, Mr. and Mrs. Johnson have been entered into a contract with
XYZ Builders Pty Ltd. For renovating their home in a sum of $500,000. However, the
builder has completed the same after the stipulated completion date, that is, after three
months of the date. The legal principles of this case are discussed here. The principles of
breach of building contracts are applicable in this scenario. The builder is not able to
complete the contract within the stipulated time. It is a legal rule that the parties to a
contract should fulfill their contractual obligation (Clough et al. 2015). It is a contractual
obligation on the part of the builder that he has failed to fulfill his obligation. The cost of
such necessary and reasonable work for making it conform in that contract, as well as
consequential losses, arisen out of such breach. Such consequential losses are claimable if
the loss has arisen from such breach of contract naturally. In the rule of Hadley vs.
Baxendale 1854, it has described that consequential losses may arise if it reasonably has
been in the inspection of both parties while making the contract. The plaintiff has beard
such a burden of proof regarding their loss. They should alleviate such compensations
arising from that breach of the building contract.
2. A building contract can be ended when one of the parties can not be able to fulfill any
part of the contract or not able to fulfill his contractual obligation within the stipulated
time. This is also called breach or repudiation of that building contract. The aggrieved
party has suffered a loss for such breach of that contract by the other party to the contract
(Hughes Champion, and Murdoch 2015). It should be mentioned here that to prove such

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breach of any building contract that there should be any breach of essential terms of the
contract. In this given scenario, the builder has breached his duty or contractual
obligation that he should complete the renovation of his clients’ house within the
stipulated time. Time, as well as the quality of work, is one of the essential terms for such
a building contract. Therefore, it can be stated that there is a violation or breach of the
building contract on the part of the builder as he has failed to make such renovation
within the stipulated time, as well as defective work. The aggrieved party, the Johnson’s,
can able to claim damages for such breach of contract, as well as for such defective work.
3. The aggrieved party, the Johnson can claim damages or compensations from the builder
for deceptive and misleading conduct by producing evidence against such builder
(Paterson, and Bant 2016). The contract has recorded that such a builder has engaged
with home warranty insurance, which is not true. A builder can able to occupy any home
insurance for his customers. The customers can rely on such insurance, and if there is any
breach on the part of such a builder, then the customer can avail damages through
claiming such insurance. It will be a misleading fact and deceptive conduct on the part of
a builder if he has told to his customer that he has taken out such home warranty
insurance, but does not do so (Charrett 2018). In this scenario, the builder has convinced
the Johnson’s that he has been occupying the home warranty insurance but is not
formally attained. Therefore, Johnson’s can submit the building contract paper as
evidence of deceptive and misleading conduct.
4. The aggrieved party can claim the damages or compensations for consequential losses.
The term consequential losses mean any loss, which has arisen out of any breach of a
building contract other than the direct loss (Harder 2019). In this given scenario, the

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aggrieved have to relocate at the time of renovating their home. They have to move from
their house for health reasons. There is an expense for such relocating to a rental place
and health purpose during such a construction period. However, the other party has
breached his contractual obligation by not completing the renovation work within time
and for defective work (Der Westhuizen and Evans 2019). Therefore, the aggrieved party
can able to justify to the court of law by submitting such documents of the rental cost, as
well as a health certificate.
Question 4
The term mediation is one of the forms of an alternative dispute resolution similar to
Expert Determination, Early Neutral Evaluation, and Arbitration. It is an informal rivalry
resolution process, which is to be brought before a neutral and independent third party
(Alexander 2015). It has given an opportunity to the parties for discussing their issues for
clearing up the misunderstanding between them. The parties can able to file various areas of their
agreement paper in such a way, which may be possible to discuss in the court of law, as it may
be time-consuming. The neutral and independent third party is called the mediator (Ali 2018).
The mediation is done in a voluntary nature. Usually, the mediator of mediation has no such
authority of making any binding decision, unless and until both the parties in such dispute agree
to provide such decision-making power to him before commencing such mediation. There are
only two bodies in the government of NSW for handling such resolution of building disputes,
such as NSW Fair Trading and NCAT (NSW Civil and Administrative Tribunal) (Martin 2015).
The role of mediation in such a building industry at NSW through these government bodies is
discussed here.