Assignment 1 Contract Problem Case Study
Introduction
The contract is a voidable contract. It is an express and implied understanding that the agreement was legally binding, meaning that, it would be enforceable by the courts if the parties took legal action to resolve the dispute between them. This case is a contract case since both parties have come up with the business agreement. That is, LNPL will provide service to Mr Garae and Mr Garae in return will pay for this service offer. Mr Garae must also be considerate of LNPL because that is what he will have to do in return for the service they provide and that LNPL needs to survive in the market as well. This is the same for Mr Garae, he will have to succeed and survive in the market and …show more content…
The work that LNPL has given to Mr Garae is not of good quality and that it is not good enough to give satisfaction to Mr Garae. Mr Garae has expected something far better than what the current outcome is. This makes him sad and giving him loss. Mr Garae has been faithful in paying LNPL’s wages and salaries but then in return they do not work to the expectation and that the output production is not effective and of excellence.
Thirdly, the job that has to be done has not fully compel with the terms of the contract but still LNPL has still pursue for the payment. Mr Garae has already paid LNPL $20,000 by way of fees being paid. But then LNPL has still proceed to recover a fee of $3,500 to be paid to him by Mr Garae. Mr Garae has refused to pay the $3,500 due to the fact that the job was incomplete.
Fourthly, the incomplete and ineffective work that LNPL has made had caused Mr Garae another expense and loss for him to engage with another contractor to come and complete the work. In this case, Mr Garae has made a big loss and that it contributes to reduction of market value of the private residential units, a reduction in the offer from a housing association for the affordable units and an increase in building costs. And also, he will lose his customers because he does not offer what was expected by the customer on time and that they are not happy with what they
Introduction
The contract is a voidable contract. It is an express and implied understanding that the agreement was legally binding, meaning that, it would be enforceable by the courts if the parties took legal action to resolve the dispute between them. This case is a contract case since both parties have come up with the business agreement. That is, LNPL will provide service to Mr Garae and Mr Garae in return will pay for this service offer. Mr Garae must also be considerate of LNPL because that is what he will have to do in return for the service they provide and that LNPL needs to survive in the market as well. This is the same for Mr Garae, he will have to succeed and survive in the market and …show more content…
The work that LNPL has given to Mr Garae is not of good quality and that it is not good enough to give satisfaction to Mr Garae. Mr Garae has expected something far better than what the current outcome is. This makes him sad and giving him loss. Mr Garae has been faithful in paying LNPL’s wages and salaries but then in return they do not work to the expectation and that the output production is not effective and of excellence.
Thirdly, the job that has to be done has not fully compel with the terms of the contract but still LNPL has still pursue for the payment. Mr Garae has already paid LNPL $20,000 by way of fees being paid. But then LNPL has still proceed to recover a fee of $3,500 to be paid to him by Mr Garae. Mr Garae has refused to pay the $3,500 due to the fact that the job was incomplete.
Fourthly, the incomplete and ineffective work that LNPL has made had caused Mr Garae another expense and loss for him to engage with another contractor to come and complete the work. In this case, Mr Garae has made a big loss and that it contributes to reduction of market value of the private residential units, a reduction in the offer from a housing association for the affordable units and an increase in building costs. And also, he will lose his customers because he does not offer what was expected by the customer on time and that they are not happy with what they