Business Law


essay prompt

Construction company Peace at Home Ltd. specializes in building and managing residential homes for seniors. The business signed two contracts in 2014.

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(a) “Peace at Home Ltd. and Mr. Smith entered into a contract for $2000 to renovate an aging structure in accordance with Mr. Smith’s specifications (including health and safety laws). However, shortly before the project was finished, Mr. Smith notified “Peace at Home” that his proposal would no longer be implemented because many elderly people would be cared for by relatives as a result of the recent global financial crisis.’ Peace at Home filed a lawsuit against Mr. Smith right away for breach of contract. The refurbished facility was sold by Peace at Home for the same amount of money they would have received from Mr. Smith, though, a few days before the case was scheduled to be heard in court.

Give Peace at Home advice on whether or not it has a right to sue Mr. Smith for damages, and if so, how much.

(a) “Peace at Home also entered into an agreement to construct a new structure for Mr. Williams in exchange for a payment of £1,000.” The contract stipulated that the payment would be made in 12 installments. If Mr. Williams failed to pay in accordance with the terms of the contract, Peace at Home would have the right to terminate the agreement and seek damages in the amount of 10% of the entire contract payment. Any sum paid in excess of 10% was supposed to be reimbursed to Mr. Williams.
Mr. Williams paid the first and second installments but did not pay the third. He also objected to paying the agreed-upon damages because he believed they were excessive.

Give Peace at Home advice on whether or not it has a right to sue Mr. Williams for damages and, if so, how much.

• The first thing you need to do is figure out which legal questions the facts create. On the basis of the facts, you should also specify the possible actions (if any) that each party might have at their disposal.

• In connection with each issue mentioned, you must inform the parties of the best available means of resolving the conflict in question.

• You must also inform each party of any potential legal defenses they may have. You should cite relevant case law authorities and any other materials you may feel are pertinent to this advice.

Important: References must be in footnote format, as shown below.


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