Norwa Builders Pty Ltd vs Holy Pty Ltd: Claim, Resolution Analysis

This report analyzes the claim of Norwa Builders Pty Ltd against Holy Pty Ltd regarding a construction contract for a Pancake Palace franchise restaurant. The dispute centers on the final installment payment and alleged delays in construction. Norwa Builders argues that the delay was due to inaccurate plans provided by Holy Pty Ltd, which impacted the commencement date and overall project timeline. The report includes a memorandum to the supervising lawyer outlining the basis of the plaintiff's claim and recommending arbitration as a resolution method. Additionally, a draft letter to the opposing party's lawyer is presented, detailing the plaintiff's claims for the final installment, damages, and costs of the suit, while also proposing arbitration to facilitate a cost-effective and timely resolution. The analysis considers the contractual terms, the sequence of events, and the potential for a negotiated settlement to avoid protracted litigation. Desklib offers a wealth of similar solved assignments and past papers for students.

Memorandum and letter of advise
Contents
MAIN BODY..................................................................................................................................1
A memorandum to supervising lawyer that briefly sets out the basis of the plaintiffs claim and
recommends a course of action of memorandum........................................................................1
2. A letter to the lawyer acting for the other party outlining the basis of the plaintiffs claim and
seeking some form of resolution drafted for approval by your supervising lawyer....................2
REFERENCES................................................................................................................................3

MAIN BODY
A memorandum to supervising lawyer that briefly sets out the basis of the plaintiffs claim
and recommends a course of action of memorandum
To: Holy Pty Ltd (Holy)
From: Norwa Builders Pty Ltd
Date: 10 March 2022
Re: Plaintiff’s claim and resolutions.
Facts of case:
The plaintiff Norwa Builders Pty Ltd (Norwa) is a construction company which is the owned
by Ms. Kia Hose and the defendant is Holy Pty Ltd (Holy) which is a company owned and
operated by its two directors Kim Dam and Harry Wee. On 2 December 2019 Kia was
approached by Harry Wee to provide a quote to complete the fit-out of commercial premises
to create a ‘Pancake Palace’ franchise restaurant. two quotes were provided by Kia on 1
February 2020. One for $212,005.60, and a further quote for $230,099.00 that included added
costs for premium finishes. On 3 February 2020 Kim Dam accepted the second quote for
works totaling $230,099.00. A contract was signed. It was agreed by the parties that the total
amount payable to Norwa by Holy upon the completion of the construction, within the
stipulated time of 42 days, would be $230,099. The payment was to be made in instalments
and that the final instalment of $96000 were to be paid on the completion of the restaurant.
The contract provided for damages of $2000 per contract day in the event of delay by Norwa1.
The construction was completed on 15th May, 2020. it was agreed by the parties that days for
the purpose of this contract would include Saturdays but not Sundays or public holidays.
When Norwa demanded the final instalment of payment, Holy refused to fulfil the same
stating the breach on the part of Norwa as it did not comply with time period set in the contract
and rather 23 demanded $94000 as damages for the breach. That the contract though specified
42 days for the completion of the construction but did not mention the start date for the same.
As well as it was implied that this time period is only applicable in the scenario where there is
no fault or delay on the part of the other party (i.e. Holy). According to Holy, the construction
1 Grundmann, S., 2021. The Future of Contract Law. European Review of Contract Law, 7(4).

start date was 17th February, 2020 which is per se false as the regulatory approval for the
building was received on 24th February, 2020. The contract only allowed Norwa to comply
with the construction plan provided by Holy. When Norwa commenced the set-out on the
floor of the premises it was discovered that the plans were inaccurate and did not suit the
actual floor plan and the architect was advised of the error in the plans on Wednesday 26
February 2020. Revised plans were provided in return in the first week of March 2020 with
the final amended plans provided to Norwa on Monday 09 March 2020 at 6.57 PM. The
calculation of damages by Holy is inaccurate and taking into consideration the above facts
Norwa should only be liable for the delay of 13 days rather than 47 contact days.
Plaintiff’s claim:
The claims of the plaintiff includes the following-
 The plaintiff demands for the final instalment of the payment which has been refused
by the defendant.
 The plaintiff seeks to make claim for the damages against the breach of the contract as
the defendant refused to make the final installment of the payment.
 The plaintiff also demands for the cost of the suit which may have been incurred
during the proceedings of the case2.
Resolution
Taking into consideration the above facts our client should be paid $70,000 which is after the
set off of damages due to the delay on the part of Norwa. As the damages which the defendant
is seeking is based on false rationale hence harassing our client. In order to make resolution of
this case, the parties may op[t for the arbitration in order to make formal hearing and
proceeding of the case so that speedy disposal of the case can be done and in cost effective
manner.
2. A letter to the lawyer acting for the other party outlining the basis of the plaintiffs claim
and seeking some form of resolution drafted for approval by your supervising lawyer
10 March 2022
2 Hesselink, M., 2019. Democratic contract law. European Review of Contract Law, 11(2).

From:
Norwa Builders Pty Ltd
To:
Lawyer of Holy Pty Ltd
Dear Opposite Party’s lawyer,
The plaintiff seeks the following claims which includes the payment for the final installment,
damages and the cost of the suit. The basis for these claims includes that the contract which
was formed between the Norwa Builders and Holy Pty did not included the commencement
date so the actual date of the contract did not begin on 17th February, rather it was started in the
date when the approval from the regulation came which was 24th February. Moreover, the
contract clearly stated the time limit for the completion of the contract which included 42 days
and that the commencement date was not expressly stated in the contract, the plaintiff took the
date of approval as the commencement date. The days of the contract does not include the
Sundays and the public holidays but included the days from Monday to Saturday. The next
basis for these claim is that the plan for the construction was not accurate for the floor plan
that the plan is being amended and send to the plaintiff on 26th February so the actual date of
the commencement of the contract is 26th February and not 17th February so the plaintiff is
entitled for the final installment payment. Moreover, the amount of damages calculated by
plaintiff is also correct and the as per the contract which includes for the payment of 2000 per
day. The defendant has breached the contract by not making the payment for the final
instalment which was agreed in the contract3.
Now that the claims of the plaintiff have been satisfied from the above mentioned reasons, the
plaintiff is entitled for its claim which includes damages, cost of suit and the final instalment
payment. The resolution which can be opted by the parties will include arbitration in which the
parties can seek the speedy disposal of the case in the cost effective manner as this method of
resolution will help in solving the case outside the court wherein the time of parties will be
saved and formal binding decision will be brought for the parties in order to settle down their
3 Harvard Law Review, 2017. Validity of Contract Involving Breach of Prior Contract. 27(3), p.273.

case4.
Yours sincerely
Advocate
Norwa Builders Pty Ltd
4 Grundmann, S. and Ochmann, F., 2020. German Contract Law Five Years After the Fundamental Contract Law
Reform in the Schuldrechtsmodernisierung. European Review of Contract Law, 3(4)..

REFERENCES
Grundmann, S. and Ochmann, F., 2020. German Contract Law Five Years After the
Fundamental Contract Law Reform in the Schuldrechtsmodernisierung. European Review of
Contract Law, 3(4).
Hesselink, M., 2019. Democratic contract law. European Review of Contract Law, 11(2).
Grundmann, S., 2021. The Future of Contract Law. European Review of Contract Law, 7(4).
Harvard Law Review, 2017. Validity of Contract Involving Breach of Prior Contract. 27(3),
p.273.