Question
The Smiths engaged Chan Constructions Pty Ltd. (CCPL) to build three townhouses in Mitcham. The contract was made under the Domestic Building Contracts Act 1995
The Smiths engaged Chan Constructions Pty Ltd. (CCPL) to build three townhouses in Mitcham.
The contract was made under the Domestic Building Contracts Act 1995 (Vic) (DBCA). Over the
course of the first 5 months of construction, the Smiths requested variations to the contract,
which were agreed to by CCPL. One of the variations was that all three townhouses were to
have large living room windows facing just south of due east, to catch the morning sun. When
the Smiths went to visit the property, they noticed that some of the variations (including the
large window variation) that they had requested had not been properly observed. They sought
legal advice and decided that CCPL, by not following their instructions, were now in serious
breach of contract. The Smiths decided that due to CCPL's breach, that they would like to hire a
new company to complete the construction, so they informed CCPL that they (the Smiths) were
repudiating the contract immediately. CCPL contact you for legal advice on whether they (CCPL)
were in breach of contract for the window placement, and whether the Smiths were allowed to
repudiate the contract on this basis. CCPL want to know if CCPL can claim
for the variation work that they had completed, especially since they had spent more money on the variations by
comparison to the original contract.
Advise CCPL.
Please use case law and Irac Formula to support your answer.
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