Question

Kumar’s business was doing well and it made him a profit of $20,000 each month. He needed to make some modifications to his business premise and thus engaged Bob Builders to do the renovation work. He wanted it completed by 31 May. He was assured that the work would be completed in time. He was informed that the renovation work would begin immediately after Council approval for the renovations was granted and that Council approval would normally only take 15 days. A contract was signed for the renovation work but it did not mention anything about Council approval of the renovation work or the assurance of work being started promptly after approval by the Council. The Council took a longer time than expected to approve the renovation work. In the meantime, Bob Builders picked up another renovation project with Matt and started working on that. When approval finally arrived for Kumar’s renovation work, Bob Builders found that it was too busy with the other project and did not start on Kumar’s renovation work. Bob Builderstold Kumar that his project would have to wait for another two months before they would start on it. They blamed the Council for the delay. As a result of all of this, Kumar’s business got disrupted and he lost two months of profit. The work was only completed on 31 July . He also lost a lucrative contract worth $100,000 during the period of delay in completing the renovations. Advise Kumar as to his rights in Contract Law.

Answer 1

Facts of the Case:

Here Kumar is running his business smoothly by earning on year basis bottom line of 20000 $, and interest in expansoion by renovtaing the same. But as per legal constraint approval is mandatory for initaited renovation in the project, which is implied in nature. Secondly Contract with contruction party to carryout the renovation works entered and agreed upon.

As delay in approval casue contruction company to engage in other project and casue delay in project completion as well as loss of Top line of 100000 $.

As drawing the line of Contract following are the extracts of consensus:

- Work of renovation to be completed by 31 May

- Inception of Work is not clearly mentioend in the contract

- Not mentioned about council approval

As per Legal view , construction in any proejcts need approval from Authority which is implied in nature in this kind of business. ALthough it can be raised by the plaintiff that same is not communicated by the Kumar while entering into contract, but this kind of business being headed by Bob requisite is the council approval which is very basic in nature and implied.

Secondly refusing the project and extending the same over the unlawful cause of approval of Council is not justifiable in nature.

Hence, Kumar may not sue for the complete damages but may sue for compensation for non starting the proejct once approval is in record.