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Justin has bought three run - down terrace houses that he wishes to renovate and sell. He enters a contract with Heritage Renovations Pty Ltd
Justin has bought three rundown terrace houses that he wishes to renovate and sell. He enters a contract with Heritage Renovations Pty Ltd to do all the work. They quote that the work will cost $ calculated on the basis that each terrace will cost $ to renovate. Justin signs a contract that says that $ is payable up front and that the balance is payable upon completion of all work identified in the quote
Heritage Renovations works on the project for a couple of months. However, unfortunately during that time it becomes insolvent and goes into voluntary administration. Justin terminates the contract and has an alternative company finish the work.
Before Heritage Renovations went into administration, it had finished the first two terraces less some minor cosmetic work that will cost $ to finish. It only managed to finish half of the third terrace which would cost $ to finish.
The administrator of Heritage Renovations claims payment for the work done under the contract.
Advise whether Heritage Renovations can claim any of the contract prices?
In the alternative, can it claim for any work done if cannot claim under the contract?
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