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. (15 marks)
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