Question
PR 15. Case Study: Is this a breach of contract? If so, could damages be applied? Solbright Pty Ltd (Solbright) is a business specialising in
PR 15. Case Study: Is this a breach of contract? If so, could damages be applied? Solbright Pty Ltd (Solbright) is a business specialising in making solar panels for commercial buildings such as sporting venues, factories and office blocks. It is a rapidly expanding business and was hoping to secure a contract to supply panels for a large public hospital. HotStuff Pty Ltd (HotStuff) is a business who manufactures the sheeting ovens necessary in making solar panels. The companies have dealt with each other for some time. HotStuff knew of Solbright's existing business, but not about the possible hospital contract. The companies entered into a contract for HotStuff to sell and install an extra sheeting oven capable of meeting the expanding workload by a certain date. During the installation HotStuff damaged the sheeting oven, resulting in Solbright having to wait six months beyond the originally agreed date for a new sheeting oven to be properly installed. During that time Solbright did not attempt to source a sheeting oven from any other supplier. Solbright is now claiming damages for breach of contract as follows: $120,000 per week loss of profits on the expected solar panel business they would have been able to undertake with the extra sheeting oven $70,000 per week loss of profits, being the estimated profits they would have obtained had they secured the hospital contract. Is this a breach of contract? If so, will Solbright be successful in claiming these damages? Give reasons for your answers. In order to answer this case study, you are required to: Collect and collate the client's information in order to identify the clients circumstances relevant to applicable consumer law matters, Research the current laws to identify the applicable legal principles relevant to the clients Analyse the legal issues and risks associated for these clients' businesses, Seek advice and guidance of a legal specialist if required Ensure you apply this knowledge and advice when explaining your answer.
Explain what client information you would collect and collate given the circumstances.
Explain which laws you identified as applicable given the specific client's situation.
Explain how you analysed the legal issues and potential risks faced by the client's?
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