BetterLawNotes-5 (2)

CONTRACT LAW

(i) On 1st May, Saxon agrees to repair Bunny’s boat which was recently damaged. The contract states that the boat is to be ready by 1st June, and that Saxon will pay Bunny £1,000 in damages for every day’s delay. On 15th May, Saxon tells Bunny that the repairs are more extensive than Saxon realised and that Saxon will not be able to deliver the boat on time. Bunny tells Saxon not to worry and that Saxon can have an extra week from 1st June. Saxon delivers the boat on 8th June. The following day, Bunny writes to Saxon claiming £7,000 in damages.

Advise Saxon. How would your answer differ if Saxon had been lying when he said the repairs were more extensive than he had realised?

(ii) On 1st August, Seth agrees to repair Bill’s car, which was recently damaged. Bill agrees to pay £5,000 on completion of the work. Seth agrees that the car will be ready by 1st September. On 21st August, Seth tells Bill that the repairs are more difficult than Seth had realised, and that, as a result, Seth will not be able to complete the job by 1st September unless Bill agrees to pay an extra £2,500 on completion. Bill, who had originally thought that the repairs would cost significantly more than £5,000, agrees. On 1st September the car is ready. Bill, however, has changed his mind and refuses to pay more than £5,000.

Advise Seth. How would your answer differ if Seth had been lying when he said the repairs were more difficult than he had realised?

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