A Markham based Smartphone Company called HDC asked a software company SDC

to develop software for them. The software company gave a total estimate of 10,000

dollars for a total work of 20 days. It was agreed between the two companies that HDC

would be paying SDC 30 percent before the beginning of the work, 60 percent after the

initial version and 10 percent on the competition.

After 10 days, of work, SDC wrote a letter that the work will take more time since their

chief software developer has left the company. After 15 days SDC wrote back saying

that they would be only able to deliver the source codes and would provide an assistant

developer who will finish the rest of the work. After 20 days, when HDC asked for the

final version, SDC told them that it can provide them with 80 percent of the work and

would like the 60 percent as promised. However, fearing the non-completion of the

project, HDC canceled the contract and asked for a full refund. SDC has threatened to

take HDC to court for a breach of contract.

Case Brief

HDC versus SDC due to an alleged breach of contract

Legal Rationale

According to SDC, there was a breach of contract but according to HDC, the software

company did not deliver them what was promised.

What legal advice would you provide to both parties? Why?