Question

1. My neighbor decided to fix up his house. I was excited because that meant it would improve my properties value. My neighbor contracted with TDH Associates to repair his roof, paint his house and do some landscaping.   TDH Associates do not fulfill their obligations. Using IRAC, if I sue TDH Associates what is the outcome?

Answer 1

In this case, TDH Associates would be liable for the breach of the contract due to the failure to fulfill their obligations because there is no consideration

Issue

Whether TDH Associates would be liable for the breach of the contract due to the failure to fulfill their obligations

Rules

Under the contract law, a contract without consideration is void.

Analysis

My neighbor contracted with TDH Associates to repair his roof, paint his house and do some landscaping. From the contract, there is no consideration. The price that would be paid for the repair, painting, and landscaping has not been mentioned. Consideration is an essential element of a contract. A contract without consideration may be declared void. Consideration ensures that something of value is attached to the contract. The contract between the neighbor and TDH Associates is void since there is no consideration. TDH Associates would not start performing a task without knowing the consideration. In Pao On v Lau Yiu Long [1979]UKPC17, the promise would have been enforceable if the parties understood the act was to be paid for at a later date. In this case, TDH Associates do not know what the payment would be after the performance of their duties. Without consideration, the contract is void

Conclusion

TDH Associates would be liable for the breach of the contract due to the failure to fulfill their obligations because there is no consideration