Question
Omar owns and runs a property renovation business operating from premises in the town of Northville. Wonder Wood Ltd (WW) also based in Northville, it
Omar owns and runs a property renovation business operating from premises in the town of Northville. Wonder Wood Ltd (WW) also based in Northville, it is a company that trades as a supplier of carpentry and joinery services. Omar entered into 2 separate contracts with WW. Contract 1 - 'Lilac Cottage' The first contract was entered into in April ('Contract 1') for the supply and fitting of new windows and floors to 'Lilac Cottage', a house that Omar was renovating. The price agreed was 35,000. The contract provided that WW would complete work within 20 weeks of entering into the contract. Two weeks later Omar entered into a contract with Jas for the granting of a 21 year lease of Law of Contract Module Guide 2018/19 66 LL.B 'Lilac Cottage'. Jas was to obtain possession 20 weeks from the date of this contract. Omar was subject to a penalty of 800 per week for each week thereafter that Jas was unable to take possession. In July (i.e. 10 weeks after work commenced), it became clear that WW was not working sufficiently quickly to complete the work in the time agreed in Contract 1. Omar therefore promised to pay WW an extra 8,000 if performance was complete by the date provided in Contract 1. WW consequently worked quicker and completed the work on time. Contract 2 - 'Thistle Grange' The second contract between Omar and WW was entered into in August, ('Contract 2'). It provided that WW supply and fit five new bathrooms to 'Thistle Grange', which Omar was converting into apartments. The price agreed was 32,000. The time agreed for completion of the work was 16 weeks from the date of Contract 2. Omar later decided that WW was, again, working too slowly to complete the work within the agreed time so he promised to pay WW a further 10,000 provided the work was completed within the time agreed. WW completed the work on time. Omar subsequently discovered that as soon as he promised to pay extra to ensure compliance with Contract 1, WW transferred all its workers from Contract 2 and put them to work on a contract for another customer. He believes that this was an act of fraud, intended to cheat him of the 10,000 extra that he had promised for timely completion. He is now refusing to honour either of his promises to pay WW extra money. Advise Omar on whether: a) WW can enforce his promise to pay an extra 8,000 for completing the work on Contract 1 within the time originally agreed. b) WW can enforce his promise to pay an extra 10,000 for completing the work on Contract 2 within the time originally agreed
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