In mid-2021, Stavros, a Builder entered into a contract with his younger cousin Mavros (aged 25) to build him a new house in Sydney, NSW. The contract indicates that the house to be constructed will be brick veneer – that is, bricks on the outside wall and a wooden frame and masonry on the inside wall. The cost will be $500,000. The parties agreed for construction to commence in March 2022 and to conclude by 30 June 2022. A formal written contract was validly signed by both parties and contained all the details of the building work.

Unfortunately, due to supply-chain disruptions occasioned by a global pandemic, there is a shortage of timber in Australia and by late February 2022, Stavros fears that he will be unable to complete the construction of the house in accordance with the terms of the contract due to the timber shortage. Nevertheless, Stavros also realizes that if the house was instead constructed with full brick – that is, both the inside and outside walls being made of brick - then Stavros could commence and finish the house on time by the 30 June 2022 completion date. Although a full brick house would be more expensive to construct than a brick veneer, Stavros believes that the additional cost of building the house in full brick is likely to be less than the additional damages payment that Mavros would be likely to receive if he sued Stavros for breach of contract for late completion of the brick veneer house.

Consequently, Stavros visits Mavros on 21 February 2022 and offers to build his house in full brick (instead of brick veneer) for the same price of $500,000. All the other details of the contract are to remain the same. Stavros gives Mavros a letter, signed by Stavros detailing his offer. Mavros is a little drunk when Stavros speaks to him so Stavros asks him to think it over for a few days and, if he agrees, to sign the letter and email a scanned copy of the signed letter to Stavros at Stavros@geemail.com.au. Mavros then sobers up and thinks it over for a few days and is happy to agree as full brick is superior to brick veneer because it helps to keep the house cool in summer and warm in winter and Mavros had originally only chosen brick veneer because it was cheaper. Mavros then signs the letter, scans it, and emails it to Stavros using the above email address. The letter arrives in Stavros’ inbox at 4 pm on Friday 25 February but as Stavros leaves his office early that day and doesn’t read his emails he doesn’t see the email until Monday 28 February when he returns to the office.

In the interim on Saturday 26 February Stavros receives a call from his timber supplier that a suitable batch of timber has been located which means that Mavros’ house could be built on time from brick veneer. Stavros quickly writes a letter to Mavros revoking his offer to build the house with full brick. As he does not want to return to his office to check email over the weekend Stavros then signs, scans, and sends the letter to Mavros by clearly photographing it and sending it directly to Mavros electronically via WHOSAPP a social media electronic communication platform on which he is able to locate Mavros. Mavros receives the photograph instantly and reads the letter that Stavros has sent him.

Question: 

Advise Mavros on his legal position under contract law (i.e. his rights and responsibilities under contract law) in relation to any relevant parties. Do NOT apply the statutory provisions of any consumer law in your response.

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Application:

Conclusion:

Answer rating: 100% (QA)

Mavros legal position under contract law is that he has the right to sue Stavros for breach of contr... View the full answer