Question
On 1 June M and Q conclude a contract whereby M undertakes to manufacture and install kitchen cupboards in Q's home for R100 000. At
On 1 June M and Q conclude a contract whereby M undertakes to manufacture and install kitchen cupboards in Q's home for R100 000. At the time of entering into the contract, both parties were aware that the price of timber used for manufacturing kitchen cupboards was going to go up by 20% from 1 August, which meant a saving of R20 000 for Q, because the contract was already concluded on 1 June. The parties agree that the contract price of R100 000 will be paid as soon as the kitchen cupboard units are installed. The parties further agree that the kitchen cupboards must be manufactured and installed by M on or before 15 July. The contract between the parties also stipulates that if either party is in breach of the contract, then the other party is entitled to cancel the contract. On 16 July Q tries to call M to find out why the kitchen cupboards have not been installed, but M's phone is off. On 10 August, M informs Q that he was on an international world tour holiday and only arrived back in the country recently, and that he is willing to commence manufacturing the kitchen cupboards only if Q is willing to pay an extra R20 000 for the increase in the timber price. Q cancels the contract with M. Q subsequently contracts with X to manufacture and install the kitchen cupboards at a cost of R120 000. When X completes the job, Q approaches you for advice as he wants to claim R20 000 damages from M. Advise Q about the prospects of success for such a claim.
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