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ILEX Part II Law of Contract Assignment 3
Task
Ron owns a building, housing a health and fitness club, which he runs as a business. He decided to extend the building because of the increased demand upon the club's facilities. He accepted an estimate of £30,000 from Fast-Track Builders Ltd to carry out the work by 1st May. There were certain conditions on the back of the estimate, which Ron had not read. The conditions included the following:
"(i) Fast-Track Builders Ltd do not accept any responsibility for any delay beyond the agreed completion date whether caused by Fast-Track Builders Ltd or by some other cause;
(ii) Whilst all materials used in the work will be of the highest standard, Fast-Track Builders will only accept a total liability of up to £1,000 in respect of any defects arising from the use of sub-standard material."
The work was completed on 1st June. Subsequently a number of defects appeared which were the result of the use of sub-standard materials. The remedial work cost £10,000 and the loss of profit resulting from the delay in completion and from the need to carry out remedial work, totalled £15,000.
Advise Ron.
(ILEx, Q5, June 1994)
Guidance
Please see me in class or e-mail me for help with this question.
Set: [date]
Due: [date]
