Mya decided to have an extension built so she called master builder Damien to give her a quote. Because the extension was substantial and would cost $50,000, Mya decided to have it built in four stages. The building contract between Mya and Damien provided for four stages of building works, with $12,500 payable to Damien at the completion of each stage. Damien commenced work on stage one in November 2020 and completed it in January 2021. Due to COVID-19, Mya was made redundant, and she is now worried about her ability to pay for the extension. Her friend, Fred, tells her not to worry. He said since Damien has only completed stage one of the job, he is not entitled to be paid under the contract at all, not even the $12,500. Fred also said she can terminate the contract early and that Damien cannot claim any damages against her.

Was Fred correct to advice Mya that she does not have to pay Damien anything and that Damien is not entitled to damages if she terminates the contract early? Why/Why not? Please use case law to support your answer.

Answer in

I

R

A

C