Question
Mr. Saleem decided to construct a factory in his premises in order to be able to meet a tender award he had obtained from a
Mr. Saleem decided to construct a factory in his premises in order to be able to meet
a tender award he had obtained from a manufacturing company. He therefore
contracted a registered builder in order to have the work completed by November 1 st
and the contractor agreed. However, the contractor had assumed that the garage
was for private use and therefore did not consider it that urgent. What transpired is
that when there was a delay in materials delivery, he did not communicate it and as
a result the project delayed till February the following year. Therefore, he took the
contractor to court in order to recover the loss he had incurred. In his lawsuit he
argued that the delay in construction cost him about $150,000 which is the value of
the tender and as such wanted the registered contractor to pay him the amount of
the tender he lost due to breach of contract by the registered constructor. However,
the registered contractor argued that while the urgency was communicated, Mr.
Saleem did not communicate that the garage was not needed for the specific
execution of the tender from the manufacturing company. The issue therefore is
whether the court has the legal authority to order the registered contractor to pay the
amount equal to the exact value of the contract he lost as a result of lack of
completion of the garage within the specific time that had been communicated.
Q# Explain the nature of tender or offer to perform in relation to the above
mentioned scenario.?
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