Legal Question in Business Law in Nigeria
Breach of contract.
(1) A builder agreed to erect a factory within one year.what is the validity of the following defences if he has failed to complete the work on time and has been sued for a breach of contract.
(2) Government impowered building retractions which prevented him from continuing from the work.
(3) The cost of building materials increased obliging him to buy in smaller quantities.
(4) A chicken pox epidermiclead to a illness of a number of the specialist workers.
(5) Some building materials on site were damaged by fire.
1 Answer from Attorneys
Re: Breach of contract.
If the contractor has contracted to complete the project within a given time,(t),he has a contractual obligation to deliver as contracted.
1)The outbreak of epidemic can hardly surfice to remedy the breach,except the proportion was so monumental that work couldn't go on anywhere in the country and it was officially declared as such.
2)Escalation in the cost of raw materials is not a sufficient ground to justify the contractor's breach of contract.
3)Government's retraction intervention that served to prevent contruction of building can be a ground for delay if that came as a new policy that was never contemplated or could not be foreseen.This can therefore be considered a force majeure.
4)Outbreak of fire can also be considered as a force majeure,justifying a delay or breach of contract for this was not contemplated or foreseen by the contract.The issue of the cause of fire or liability for negligence (if any) is another issue altogether.
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