Kumar’s business was doing well and it made him a profit of $20,000 each month. He needed to make some modifications to his business premise and thus engaged Bob Builders to do the renovation work. He wanted it completed by 31 May. He was assured that the work would be completed in time. He was informed that the renovation work would begin immediately after Council approval for the renovations was granted and that Council approval would normally only take 15 days. A contract was signed for the renovation work but it did not mention anything about Council approval of the renovation work or the assurance of work being started promptly after approval by the Council. The Council took a longer time than expected to approve the renovation work. In the meantime, Bob Builders picked up another renovation project with Matt and started working on that. When approval finally arrived for Kumar’s renovation work, Bob Builders found that it was too busy with the other project and did not start on Kumar’s renovation work. Bob Builderstold Kumar that his project would have to wait for another two months before they would start on it. They blamed the Council for the delay. As a result of all of this, Kumar’s business got disrupted and he lost two months of profit. The work was only completed on 31 July . He also lost a lucrative contract worth $100,000 during the period of delay in completing the renovations. Advise Kumar as to his rights in Contract Law.

Answer rating: 100% (QA)

The issue in this case is whether the council or Bob Builders should compensate Kumar In the scenario the critical path of the project was affected by renovation delays The delaying events were caused ... View the full answer