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Termination in law cases
Just after the end of the financial year, Josh and Julie decided to renovate their house and add a large, enclosed entertainment area. Having done an architecture degree, Josh decided that as the area will be enclosed, a timber flooring would be the most environmentally friendly material, as well as being the most hard wearing and aesthetically appealing.
Knowing exactly what he wanted and how he wanted the final product to look, Josh placed an advertisement in the local newspaper on 5 August 2015.
Quotes for floating timber flooring: seeking quotes for the supply and installation of floating timber flooring for an area 100 square metres. Best quote not refused.
On 8 August 2015, Brendan, who owns Decks4u, completed a standard from quote based on $30 per square metre. At the bottom of his quote, Brendan’s quote stated: “Provider accepts no responsibility for defects in workmanship.” Brendan emailed the quote as required.
On 12 August, Stewart emailed Josh quoting $28 per square meter. However, due to a power outage caused by a severe storm, neither Josh nor Julie received the email until 16 August 2015.
On the 13th of August, Josh phoned Brendan and accepted his quote of. It was agreed that Brendan would commence work the following day.
By the end of the day on the 16th of August, Brendan had laid 55 square metres of the flooring. However, there was heavy rain during the night and when Josh and Julie inspected the new room in the morning, they found it flooded. Not only was the room flooded, but a portion of the land under the room had subsided and the floor collapsed. It seems that Brendan left the door to the room open to allow the enclosed space to ventilate. This would ordinarily not have been a problem, but Brendan appears to have placed his tool bag over the drainage outlet not far from the door. This seem to have caused the flooding.
When Brendan arrived to complete his work, Josh would not let him. Josh was screaming abuse at Brendan telling him to ‘get out and never come back’. No amount of apologising was calming Josh, not even offers to complete the work at reduced price. Eventually, Brendan left asking Josh to contact him so that they could arrange for the work to be completed.
A short while later, when Josh opened his email, he found Stewart’s quote. Josh phoned him and arranged for him to complete the floor, as soon as the structural issues were corrected. Stewart agreed to complete as soon as the floor was structurally sound. At some point during this conversation, Josh had told Stewart he was the cheapest quote.
Both Stewart and Brendan are threatening to commence legal action against Josh and Julie for breach of contract. However, Josh believes he also has a counter claim against Brendan.
Advice Josh and Julie of their legal rights and/or obligations, and the likelihood of a successful action being brought by either Stewart or Brendan. Your answer MUST be supported by relevant case law.
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