LAW3311 Company Law | Provision of Breach of Contract
Roger contracted Felicity to install a new central heating system in his house for$ 20,000. The work was completed on time and on final inspection it looked fantastic. When Roger turned it on it blew out air but it did not heat. Roger refuses to pay Felicity any money.
Discuss with reference to any relevant case law.
Answer:
Issue
The issue in this present case is whether Felicity is entitled to get the amount of money from Roger.
Relevant Laws
The present issue can be solved by discussing the provision of breach of contract. A contract needs to be performed by both the parties for the purpose for which it was entered into. If there is a material breach of a contract, the contract can be terminated. If a person fails to perform his part of a contract without any reasonable excuse, it can be said that he has committed breach of contract. Doctrine of substantial performance requires that, a contract should discharged in a way that actual performance of the conditions are substantially performed.
Application
In this case, the process of installation of the heating system was completed on time but it did not satisfy the purpose for which it was installed. The heater did not blow hot air when Roger turned it on. It is the general observance that a central heating system is installed in a house for the purpose to blow out hot air. The contract was not performed in the way Roger had wished and entered into the contract. Hence, Roger may refuse to make the payment to Felicity. Additionally, Roger can ask Felicity to fix the problem if Felicity wants to receive the payment from Roger. As decided in the case of Bolton v Mahadeva, Contract will not be terminated if default party agrees to discharge the contract under substantial performance (Knapp, Crystal and Prince 2016).
Conclusion
It can be concluded that the contract can be terminated under breach of conditions of contract, if Felicity does not fix the problem under substantial performance.
Reference list:
Bolton v Mahadeva [1972] 1 WLR 1009
Knapp, C.L., Crystal, N.M. and Prince, H.G., 2016. Problems in Contract Law: cases and materials. Wolters Kluwer Law & Business.
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