The Stellar Hotel management team is furious by Liam’s attitude

Question 1

The Stellar Hotel in County Donegal, entered into a contract with Liam Hayden, a local builder, to carry out renovation work to their main conference/function room. The agreement was that the work would begin in March 2018 and be finished by the end of May 2018.

Unfortunately, Liam was unable to complete the work within the agreed schedule. By the end of April work on the electrical and sound system, as well as the construction of disability accessible toilet facilities had not been finished.

Liam explained that he was not in a position to complete the work, as he had another project that was starting in May. Therefore, to take into account the non-completion of the project Liam told the Stellar Hotel management team that he would only bill them for 70% of the agreed price, as he had only completed 70% of the agreed renovation work.

The Stellar Hotel management team is furious by Liam’s attitude and they are especially concerned as they are due to host the Marketer of the Year awards in this room on the third week in June.

The Stellar Hotel is considering suing Liam for the loss of this contract if they are unable to find another builder to complete the work on the function in advance of this event. They have contracted you seeking advice in this regard.

1. State the meaning of the term breach of contract, and the type of breach that has occurred, as well as the effect of a breach. (10 marks)

2. Advise the Stellar Hotel management team whether they are obliged to pay Liam for the renovation work he has undertaken in relation to the conference/function room. (10 marks)