Assignment- 20%
Lecturer: Arthur Hoyle
Tutor: Rosa Raco- Tues 4.30-5.30pm
LEGAL ADVICE
Subject University of Canberra – Breach of Contract and Damages matter
You have sought my advice as to you rights under the original contact between your company, Peerless Computers and the University of Canberra, which you consider that the University has breached. Your company has requested advice as to whether a term such as delay by a third party can be successfully implied into the contract.
Additionally, your company has sought advice as to whether the University can recover its additional costs arising from the failure to meet the obligations of the contract, and if so how much of these costs can be recovered.
Background
The University of Canberra invited tenders from computer manufacturers to re-equip its computer centre. Peerless computers made an offer to University to supply the computers. The offer was accepted by the University and a contract was signed requiring delivery no later than one week prior to the start of the next semester.
Two weeks prior to the commencement of the semester as the result of a fire at Peerless’ supplier’s factory a delay of three weeks is placed on essential computer components. Upon being informed of the fire the manager of Peerless computers immediately contacted the University to advise that they would be unable to meet the terms of the contract. The manager did not offer any suggestions as to what solutions were available to the University.
The University then formally cancelled the contract with Peerless and engaged into a contract with another supplier, Fujitsu. The consideration of the new contract with Fujitsu was 20 percent higher than that of the contract with Peerless. The computers were delivered by Fujitsu in the required timeframe.
The University invoiced Peerless computers for the 20% additional cost incurred.
Advice
Breach of Contract
The breach of a contract can
Bibliography: Davis, J. (2006). A plaintiff must take reasonable steps to minimise the effects of a breach of contract. Retrieved 10, September, 2008 from: http://legalonline.thomson.com.au.ezproxy1.canberra.edu.au/tla/resultDetailed.jsp?id=7.9.500 Nygh, P., & Butt, P. (2003) Concise Australian Legal Dictionary: 2nd Ed. Chatswood: Butterworths ----------------------- [1] Peter Nygh and Peter Butt, Concise Australian Legal Dictionary (2nd ed, 2003) Butterworths, Chatswood 57. [2] Andy Gibson and Douglas Fraser Business Law (3rd ed, 2007) Pearson Education Australia, Frenchs Forest 363. [3] Peter Nygh and Peter Butt, Concise Australian Legal Dictionary (2nd ed, 2003) Butterworths, Chatswood, 293. [4] Andy Gibson and Douglas Fraser Business Law (3rd ed, 2007) Pearson Education Australia, Frenchs Forest 408. [5] Peter Nygh and Peter Butt, Concise Australian Legal Dictionary (2nd ed, 2003) Butterworths, Chatswood 331.