Ether and Saint bought a vacant land in the outskirts of the Island of Viti. The land is surrounded by pristine beaches and tranquility. Ether and Saint want to build an apartment on the land. In due course, they intend to occupy one flat and rent out the other flats. Saint had also promised Ether that he would do a swimming pool and gym for her.
Ether and Saint spoke with few contractors, and eventually engaged the services of PP Constructions Limited to construct their apartment. PP contractors assured Ether and Saint that all constructions works would be carried out according to the specifications/instructions provided by them. PP contractors further assured Ether and Saint that PP contractors would personally carry out all works relating to the construction of their dream apartment. Ether and Saint are thrilled.
Ether and Saint and the contractors agree on the following terms:
PP Constructions Limited received the initial sum of $250,000 on 09/02/20, however due to bad weather they could not commence work until 27/02/20. PP Constructions Limited feels that the contract sum of $950,000 is not sufficient anymore and wants more money from Ether and Saint.
Contrary to the agreement, PP Construction Limited subcontracted some foundation works to a one MK Contractors and his team.
Upon half completion of the foundation works PP Construction Limited approached the Ether and Saint for further payment, being the second instalment.
Before making any further payment the couple insisted on inspecting the completed works, to ensure that work was done according to the specifications. The couple went for inspection on 08/04/20. They were appalled to see that the foundation work had not been fully completed. In addition to this they are not happy about how the foundation had been laid. The layering of the foundation seem to have been rushed and irons which were mounted look defective. The poles were not mounted according to the specifications provided. The foundation layer was not properly filled in, and it had huge gaps, and this was contrary to the instructions provided to PP Constructions Limited.
Ether and Saint are very frustrated and they terminate the services of PP Construction Limited. Ether and Saint want their $250,000 back. They allege that PP Construction Limited breached the terms of the contract.
PP Construction Limited insist that they would not return the $250,000 and further demand$100,000 for the half completed foundation works. MK Contractors and his team are yet to be paid $30,000 and they are demanding their money too.
Reffering to the above case study; answer the following:
a. Ether and saint seek your advice, write a memorandum of advice addressing all relevant issues. Your advice must consider relevant elements of contract law, cases, remedies and defences.
The memorandum of advice should be in the format provided below: