Question
Andy Lee migrated to Australia from South Korea.He worked very hard in country Victoria from job to job mainly as a farmer for nearly 10
Andy Lee migrated to Australia from South Korea.He worked very hard in country Victoria from job to job mainly as a farmer for nearly 10 years.His English has not improved much because he is too busy working and he has some basic English to get by with his daily farming jobs.He married a Korean lady in 2019 and decided to build a house in Pakenham South for him and his wife.He bought a block of land and signed a building contract with a small builder Super Homes Pty Ltd (the "Builder") in December 2019.The contract states the followings:
a.The commencement date for the construction: 30 January 2020
b.The duration of the construction: 12 months
c.The payments of the construction are in 6 instalments:
-20% initial payment upon signing the construction contract
-15% payment for completion of the foundation
-20% payment for completion of frames
-20% payment for lock-up
-20% payment for completion of the construction
-5% payment for issuing certificate of occupancy
d.Payments must be made within 7 days when receiving the invoices from the Builder.Otherwise, the Client (Andy Lee) must pay an interest of 10% of the overdue amount to the Builder.
e.The Builder will not be responsible for the delays of the construction due to: extreme weather; labour strikes; unpredictable financial crisis; "Act of God"; nature disasters such as bush fire, earthquake, typhoon, flood, etc.
f.The Builder will try its best to avoid delays or damages.No penalty will be payable by the Builder to the Client in any circumstances.
g.The Builder will build the house in accordance with the industry standards.
h.The Builder gives no further guarantee or warranty regarding the qualities of workmanship or materials.
i.In case of any dispute, the Client and the Builder will go to the VACT for a dispute resolution.
Unfortunately, the COVID-19 pandemic affected the construction of Andy Lee's house.After the completion of the frames of the house, the Builder could not get tradesmen to build Andy Lee's house.The construction came to a stop after Andy Lee paid three instalments of 45%.When the COVID-19 situation was improved in Victoria, Andy Lee went to inspect the house and found the building site was full of water, broken frames, waste plastic bottles, papers, bricks and other rubbishes.Andy Lee was extremely angrywith the status of the house and the progress of the construction because he wanted to move in by the end of January 2021.The Builder claimed the COVID-19 pandemic was an "Act of God", thus no one would be liable for the delays.In addition, The Builder has demanded an extra payment of $5000 to clean up the site before continuing with the construction.Andy Lee wanted to sue the Builder in the Pakenham Magistrate Court because he believed the delay was caused by the Builder's laziness and mismanagement.Please advise Andy Lee of the following questions:
(a)Did the Builder breach the contract?Focus your analysis on performance of contract and the relevant rules.
(b)Do you think the exclusion clauses in the Contract can protect the Builder?
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