One increasing trend we have seen is the rise of building disputes between owners and their builders. The type of issues that appear varies and can range from the beginning when contracts are being formed and all the way to issues with construction.
Real Life Example
A client of ours signed a building tender for a price of around $265,000.00 and subsequently paid a deposit to the building company.
Our client requested a variation to the construction it was agreed by both our client and the building company the new fix price will be increased to $265,750.00.
However, about a week after, the building company unilaterally imposed on our clients of a price increase to $299,428.00 due to a purported error in the calculation of area size.
Two weeks later, our client was informed again of another price increase due to a further purported error of the builder. This time the price was increased to $302,391.00.
By this stage, our client no longer wants to engage with the building company and wished to recover their deposit.
Contract in General
A contract is a legally enforceable agreement between two or more parties. In most cases, contractual obligations are performed appropriately. However, sometimes a party of the contract may perform their obligations poorly or in ways that would dishonour the contractual terms.
These circumstances could be when a party breaches an essential contractual term, engages in misleading and deceptive conduct or misrepresentation. Accordingly, such circumstances could possibly end a contract before either party has completed their contractual obligations.
How Did We Help?
After receiving all the facts from our client, we proceeded to write to the building company to inform them that their significant increase in price may constitute, among other things, misleading and deceptive conduct and misrepresentation by the construction company to our client.
Our client successfully obtained a complete refund of their deposit.
If you found your self in an undesirable situation while trying to finalise a contract or you find the other party to constantly changing the terms in the contract, it may be a sign that you should contact our solicitors to help you!
Disclaimer: The information above is intended to be general information only and it should not be relied upon it as legal advice. If you seek professional advice please feel free to contact the team at Lincoln Legal or make an enquiry.
This article was made possible by Jonathan Wong