Question
Vincent decided to start a business to provide day-care services for adults who had special needs for example autistic adults. In order to do so,
Vincent decided to start a business to provide day-care services for adults who had special needs for example autistic adults. In order to do so, he rented a building and started planning the renovations as he needed to incorporate features which would be suited to the needs of these adults who enrolled for day-care services. At the same time, he started marketing his day-care services.
He met with Charles, a contractor to discuss renovation matters. Vincent told Charles that he needed the centre renovations to be completed by 30 April as he had, as a result of his marketing efforts, already entered into various contracts to commence providing such day care services from 1 May. As both parties were agreeable to the terms including the date of completion of the renovations, they entered into the renovations contract on 1 March for work to be completed and handed over to Vincent by 30 April. As part of the terms of the contract, the parties agreed that payment will be made to Charles only upon the completion of all the renovation works under the contract.
Subsequently, Vincent realised that he would have excess space in the building during the first year of the business. Hence, he decided to sublet one of the halls in the building. He entered into a rental contract with Mei on 15 March, to rent the hall in question to Mei for a period of one Charles commenced work but after a week's work, he ran into labour shortage issues and hence the progress of the renovations was delayed. As time progressed, his labour issues worsened. Charles then stopped the renovations in the third week of March and handed the centre in its partly renovated state to Vincent. Vincent was left stranded but luckily, he managed to find another contractor to complete the remaining renovation works on the same terms of his contract with Charles save that he could only open his centre on 1 July. He was unable to collect the fees for day-care services prior to 1 July. At the same time, he was only able to collect rental from Mei from 1 July for the remaining 10 months of the rental contract.
Vincent was very angry and wanted to claim against Charles for his losses. However, at the same time Charles felt that having completed part of the renovations, he should be entitled to some payment.
Required
Advise Charles if he is entitled to claim against Vincent for any monies for the work which Charles had done. Advise Vincent as to what losses he may claim against Charles in respect of Charles' failure to complete the renovations on time.year with effect from 1 May for the monthly rental of $3000 per month.
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