Question
Kumar's business was doing well and it made him a profit of $20,000 each month. He needed to make some modifications to his business premise
Kumar's business was doing well and it made him a profit of $20,000 each month. He needed to make some modifications to his business premise and thus engaged Bob Builders to do the renovation work. He wanted it completed by 31 May. He was assured that the work would be completed in time. He was informed that the renovation work would begin immediately after Council approval for the renovations was granted and that Council approval would normally only take 15 days.
A contract was signed for the renovation work but it did not mention anything about Council approval of the renovation work or the assurance of work being started promptly after approval by the Council. The Council took a longer time than expected to approve the renovation work. In the meantime, Bob Builders picked up another renovation project with Matt and started working on that. When approval finally arrived for Kumar's renovation work,
Bob Builders found that it was too busy with the other project and did not start on Kumar's
renovation work. Bob Builders told Kumar that his project would have to wait for another two
months before they would start on it. They blamed the Council for the delay.
As a result of all of this, Kumar's business got disrupted and he lost two months of profit. The
work was only completed on 31 July . He also lost a lucrative contract worth $100,000 during
the period of delay in completing the renovations. Advise Kumar as to his rights in Contract
Law.
Could you please answer this Case Study question based on ILAC format ( Issue, Law, Application, Conclusion) and please use Corporation Act 2001 Statutory Law (Australia).
Thank you for your assistance in advance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started