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Edward Rich, a multi-billionaire property developer, decides to refurbish three of his many properties. He enters into three separate contracts with the following companies; Best Builders Ltd (“BBL”), Ravishing Rooms Ltd (“RRL”) and Perfect Print Ltd (“PPL”).
In the first contract BBL agree to build a new concert hall in the grounds of a large property called “Taylor Caldwell Mansions” that Edward has recently purchased. Edward informs BBL that the work must be completed by 1st May 2013 as he has hired a pop group called the “Dip-Sticks” for the grand opening on that day. Unfortunately, due to a flood alert, nearly all the roads leading to the concert hall are closed-off. There is another available route to get to the concert hall, but that would take an extra eight hours travelling time. Under the circumstances BBL decide not to deliver the bricks for the concert hall until a week later; by which time the emergency has subsided. As a result, the grand opening has to be put back until 1st June 2013. Due to the postponement Edward loses “30,000 on advertising and 100,000 on advanced ticket bookings. Also, due to another pop festival taking place on the rescheduled day, i.e., 1st June 2013, the concert is badly attended and Edward also loses 130,000 profit from expected sales on t-shirts and CD’s from the group’s latest recording.
In the second contract RRL agree to make built-in wardrobes for the bedrooms in one of Edward’s hotels, called “The Olly Marlborough”. RRL have, on six separate occasions in the past three years supplied and fitted carpets in other hotels belonging to Edward. In this instance, due to the negligence of one of the workmen the wardrobe is not fitted correctly and crashes down onto the floor, ruining a Persian rug valued at 5,000. On hearing the noise, Edward rushes into the room and falls over some computer equipment that the electricians, who had been working in the room the previous day, had forgotten to take away. As a consequence, Edward breaks both legs and is in hospital for six days. RRL refuse to accept any liability and point to a clause in the contract which states that RRL do not accept responsibility in any circumstances for any damage or injuries howsoever caused.
Edward wishes to get leaflets printed publicising the opening of his new estate agency business called “Houses R Us. Prior to entering into the contract with PPL, Peter, a director informs Edward during negotiations that PPL only use the latest and up-to-date printing machines on the market. Peter also tells Edward that “we are the cheapest, ask anybody.” Edward decides not to have their claims checked out and enters into a contract with PPL for the printing and delivery of 10,000 leaflets. When the leaflets arrive Edward discovers that 3000 of them are mostly blurred and that the paper that was used was very flimsy and had been manufactured over ten years ago. He immediately terminates the contract and refuses to pay PPL anything. Six months later Edward discovers that PPL’s printing machines are over seven years old and that their prices are one of the most expensive on the market.
Advise all the parties involved.
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