Legal Question in Business Law in Australia

A builder and an Owner entered into a contract to build a 5 floor apartment block. The contract price is $5 million, $200 000 is to be paid immediately as a deposit, $800 000 on completion of the first floor and $1 million is to be paid upon completion of each subsequent floor. After 3 floors are completed the Owner has paid the deposit plus a further $1.1 million (total $1.3 million).
The Owner then terminates the contract invalidly. If the builder had completed the contract it would have cost a total of $6 million due to the high risk of building the 4th and 5th floors. The builders expenses so far are $1.5 million. What payments and/or damages is the builder entitled to retain and/or recover from the Owner.

Asked on 2/12/11, 9:44 pm

Steve White White SW Computer Law

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0 attorneys agreed

Your facts are complicated and you should get urgent legal advice.

That said, a party who breaches a contract is liable to pay damages to put the non-breaching party in the same position as if there was no breach.

Depending on, amongst other things, the contract, the breach and the steps taken to mitigate the loss this could include a range of damages

For legal advice please contact www.computerlaw.com.au.

Answered on 2/13/11, 5:18 pm

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