Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Kumars 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

Kumars 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 Kumars renovation work, Bob Builders found that it was too busy with the other project and did not start on Kumars renovation work. Bob Builderstold 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, Kumars 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Impact Of Auditor Rotation On Audit Quality A Field Study From Egypt

Authors: Diana Mohamed

1st Edition

3848425378, 978-3848425372

More Books

Students explore these related Accounting questions