Question 7 (Termination of contract); Priyantha enters into a contract with Jay for Jay to build him a house. Unfortunately, things do not go according to plan: (a) Jay contacts Priyantha a month before the building is too commence and says he is too busy to build the house.
(b) Jay eventually agrees to build Priyantha’s house. The contract provides for the house to be built out of mud-brick. When Priyantha visits the house after a couple of months he sees that Jay has used weatherboards.
(c) Jay walks off the job after the lock-up stage complaining that the weather is too cold.
Business of building houses
Difference between entire agreement and divisible contracts. Building contracts have to be in writing- but quantum meruit may apply.
Possibility of frustration – what if builder falls ill or is injured. Weather – storms, floods.
Is there a time clause? Can it be met?
Remedies for breach, Can’t be an order for specific performance but damages can be considerable.
ACL -breach of implied guarantee to render services with care and skill. Can’t be excluded in a consumer sale
S18 be careful not to make misleading of deceptive statements about the quality or composition of materials etc.
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