Posted: December 20th, 2014

business and company law

business and company law

Question:
Clare owns a successful hairdressing salon. She has just bought the bookshop next door with a view to expanding her business premises to include a beauty salon. She entered into a contract with Ben, a builder, who agreed to convert the bookshop for £25,000. Ben agreed to start work on 1 September and said the job would take about six weeks. Clare agreed to pay Ben £5,000 on signing the contract, with the balance payable in two instalments of £10,000 due on 1 October and on completion of the work.
Advise Clare in each of the following alternative situations:

(a)    Clare paid the first instalment and Ben started work on 1 September. On 13 September he told Clare that he had underestimated the cost of the work and had run out of money to buy the materials he needed. Clare had taken a booking for a large wedding group on 1 November and needed to have the work finished before then, as the salon at her original premises was not large enough. She said she would give Ben an extra £2,500 if he guaranteed to have the work done by the end of October. Ben agreed. He finished the work on time and Clare paid the 2nd and 3rd instalments but has not paid the extra £2,500. She wants to know if she can be made to pay this.

(b)    Ben started work on the conversion but shortly after receiving the second instalment on 1 October, he told Clare that he was currently working on too many other building projects and that he would not be able to complete the job. Clare engaged another builder who finished the work for £14,000. She wants to know if she can claim compensation from Ben and whether Ben can recover any more money from her.

(c)    Clare became concerned that Ben’s workmanship was of poor quality. On 27 September, she decided not to pay him anything further and asked him to stop work in order that she could seek an alternative builder to complete the work satisfactorily. She wants to know if she is entitled to do this. If not, can Ben claim any more money from her?
Word limit:   2000

Referencing
Your coursework should clearly distinguish between your original words and ideas, and those of others. When referring to the work of others, from books, journals or any other source (including the internet), it is essential that you make this clear by acknowledging your source and referencing correctly.  Failure to reference correctly will lose you marks and may constitute plagiarism or collusion.   Unless specified otherwise by the module organiser, please use the Harvard system of referencing.

Attention:
1.  Our text book is Mclntyre, E (2014) Business Law. 7th edn. Pearson Education ISBN 9781292004020.  Please use 1 or 2 mentioned exsample, no more than 3, from this book as references.

2. I also need to remind you some special chapter that you may need to read through before writing.  Mclntyre, E (2014) Business Law. 7th edn. Pearson Education ISBN 9781292004020
(1) Chapter “Formation of contracts – offer and accetance”
(2) Chapter “Other requirements of a contract- intention to create legal relations. consideration. formalities. capacity” (especially “Performing and existing duty”)
(3) Chapter “Discharge of liabbility. remedies for breach of contract”
(4) “Reasonable care and skill” from Chapter “Terms implied by statute”

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