Question
Salman signs a contract to build a warehouse in Sydney for his client. They agree on the price and time frame for the completion of
Salman signs a contract to build a warehouse in Sydney for his client. They agree on the price and time frame for the completion of the project. Salman hires two apprentices on lower wages than qualified tradespeople; he also hires another two laborers on a daily basis. Work is about to commence. But digging the foundation takes much longer than expected because Salman and his crew had to extract some large rocks embedded within the soil. The laborers he hired leave him and there are no other laborers he can hire on such short notice to replace them. One of the apprentices completes his apprenticeship and will not have to be paid full trade wages. The other apprentice leaves for Adelaide. Salman now has no laborers to finish building the warehouse. The cost of employing new tradespeople will mean that he will lose money in building the warehouse. He wants to terminate the contact and believes that he has grounds to do so due to frustration of contract. He then tells the client that he cannot proceed with building the warehouse but would like to be paid for the foundation work.
(a) Can Salman correctly argue that the contract is frustrated?
(b) Can he ask for payment for the foundation work done on the building?
Step by Step Solution
3.32 Rating (161 Votes )
There are 3 Steps involved in it
Step: 1
a Salman can not argue that contract is frustrated Reason I n orde...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started