Renovation Contract for Umbrella Learning Centre

Contract Details

On 11 August 2020, VanyaHo entered into a contract with DiegoToh to renovate her school, TheUmbrella Learning Centreand to set up the internet system for the school’s online lessons starting in October. They agreed to the total sum of $100,000 with a10% deposit of $10,000 to be paid on the signing of the contract. $20,0000was to be paid upon the design being approved by Vanya Ho. The balance of $70,000was to be paid on the completion of the renovationworks. The contract provided that Diego Toh was to complete the renovationworksand handover the school to Vanya Ho not later than 20 September 2020. The design was approved by Vanya Ho on 18 August 2020. Diego Tohproceeded with the renovation which was completedon 19September 2020. Vanya inspected the renovation work on 20 September 2020. She was not pleased with the internet system when she tested the wifi connection. The wifi signals were weak and created issues for running the online lessons. Diego Tohexplained that his electricians have gone back to Malaysia and would only be back early 2021. He insisted that the renovation works including the setting up of the internet system were in accordance with the design as approved by Vanya.On 21 September, Vanya Ho called an independent electrician, Klaus Soh, to inspect and advise oninternet system. Klaus Soh explained that the internet system was poorly set-up. He quoted $2,000 to rectify the defects which could be completed by 25 September 2020. On 22 September, Diego Toh contacted Vanya Ho and demanded payment of the balance amount of $70,000. Vanya Ho refused to pay the balance and insisted that Diego Toh rectify the internet systemby 26 September 2020.Advise Diego Tohon the following: (a)Explain the ways in which a contract may come to an end. (10marks) (b)Diego Toh would like to claim the full amount of $70,000. Discuss the LEGAL PRINCIPLESconcerning the performance of the contract, APPLY the legal principles, and CONCLUDEon whether Diego Toh could discharge the contract with Vanya Ho and claim the full amount of $70,000