Owner of an auto repair shop hires Contractor to remodel his shop but does not mention...

Owner of an auto repair shop hires Contractor to remodel his shop but does not mention that two days after the scheduled completion date, Owner is to receive five small US Army personnel carrier trucks for service, with a three-week deadline to finish the job and turn the trucks over to the army. The contract between Owner and the army has a liquidated damages clause calling for $300 a day for every day trucks are not operable after the deadline. Contractor is five days late in finishing the remodel. Can Owner claim the $1,500 as damages against Contractor as a consequence of the latter’s tardy completion of the contract? Explain.

Solutions

Expert Solution

Owner of an auto repair shop hires Contractor to remodel his shop.

Thus it is the owner's duty to clarify and mention everything correct and specific in the contract.

Here the owner didn't mention about the receipt of five small US Army personnel carrier trucks for service, with a three-week deadline to finish the job and turn the trucks over to the army.

Thus the contractor will be nowhere liable for any compensation or damages if any for the delay of work as the contract did not specify any valid justification about US personnel.

The contract between Owner and the army has a liquidated damages clause calling for $300 a day for every day trucks are not operable after the deadline.

Contractor was 5 day late.

Owner is completely liable for damages and not the contractor as the whole agreement's knowledge was kept only with the owner and it was purely his decision whether to accept the clause or not.

Thus, owner can't claim the damages of the same.

jeff jeffy answered 11 months ago

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