Worksheet 9: Discharge of Contract

Discussion Questions

Question 1 Jessica has just purchased an old Victorian building in Little India, part of which she intends to convert into a teahouse, while retaining the remainder of the building as her residence. Discuss the legal position of the parties in each of these scenarios taken separately and independently. Required 1. Jessica has engaged Lawrence, who has agreed to do the conversion and renovation work of a teashop and Jessica's residence, respectively, for a lump sum of $100,000 payable on completion. Lawrence completes the renovation of Jessica's residence (wherein Jessica immediately takes residence) but abandons the construction site as he had by then secured a more lucrative contract elsewhere. It was also agreed that all the renovation and conversion works had to be completed on or before 1 Jan 2020, to mark the 100th Anniversary of the building and the Grand Opening of the Teashop. Lawrence, however, claims that Jessica owes him $40,000 for the work done on the residential part of the project. Meanwhile, Jessica has no choice but to engage Chris to undertake the conversion work of the teashop at a price of $80,000, so as to meet the deadline. Chris completes the work on time. But Jessica refuses to pay as she claims the work is rather shoddy: the doors to the kitchen open inwards instead of outwards; and the shop's service counter slopes from horizontal, making it difficult for the waiters to work. The cost of remedying these defects was $1,000.

Advise Jessica regarding her rights and/or obligations as against Lawrence and Chris.

2. Luke has been hired at a price of $1,000 to design a website advertising the teashop and detailing the history of the building. Payment was to be made when Luke hands over the website to Jessica. Luke has begun research and has sourced various pieces of archive film and photographs of the old building and its former residents. Luke intends to showcase his work in order to secure other similar projects. However, he is bitterly disappointed when Jessica calls him to cancel the contract. He decides to complete the work regardless of Jessica's wishes and bills her for the $1,000.

Advise Jessica regarding her rights and/or obligations as against Luke.

3. Jessica ordered 200 units of 1.2 litre teapots from T Ltd that incorporated various Victorian designs. She made it clear to T Ltd that the stated dimension of the 1.2 litre teapot was just nice to sit snugly on her Victorian shelves. When the teapots arrived, Jessica realised that they were 1.25 litre teapots instead of the 1.2 litre teapots that she had ordered. Alas, the extra 3 mm footprint made the teapots too large to be displayed on the renovated Victorian shelves 2 that ran around the tea shop. Jessica refused to accept delivery for this reason. T Ltd explained that they had run out of supplies for the smaller teapots but argued that Jessica could not refuse delivery for something so trivial.

Advise Jessica regarding her rights and/or obligations to T Ltd.

4. Jessica has decided to sell the teashop to Deepak, a well-known tea taster and enthusiast in Little India. The sale and purchase agreement is signed and a sum of $500,000 is paid by the purchaser, the remaining $1 million to be paid on the date of handing over possession. But two days before the date of handing over, the Singapore Government acquires the entire land and building on which Jessica's tea shop is situated for use as a public museum. Deepak does not wish to be burdened with a teashop that will be soon acquired by the Government and refuses to pay the remainder of the purchase price and has also asks for a refund of the initial deposit.

Advise Jessica regarding her rights and/or obligations as against Deepak.