Dispute Concerning Existence of a Contract and Repudiatory Breach

Overview

Our Client had been engaged in a lengthy tender and design development period during which multiple counteroffers and terms were exchanged. A matter of days before the start date, our Client was advised by the defendant that the works were being awarded to another contractor.

Our Client instructed us to make a case for the existence of a construction contract and the defendant's repudiation of that contract by the awarding of the contract works to another contractor.

Entitlement

We established the material facts contained in the contemporaneous correspondence and the relevant legal principles established by case law concerning the elements required for the existence of a legally binding contract and when those elements are taken to have occurred.

We applied the legal rules to the material facts and made a case that a contract came into existence by the conduct of the parties, and that our Client was therefore entitled to common law damages caused by the defendant's wrongful repudiation of that contract when it awarded the contract works to a different contractor.

Quantum

We established the losses by reference to the actual costs incurred in respect of staff, plant and equipment, and the loss of profit that would likely be incurred by reference to the tender rates as verified by the last 4 years accounts. Total losses claimed were just over £97,000.

Settlement Offer & Adjudication

We submitted the claim to the defendant on behalf of our Client and invited the defendant to engage in without prejudice settlement discussions. However, a settlement proved not possible, so we were instructed to pursue the claim through Adjudication.

We commenced the Adjudication proceedings and drafted the claim submissions. The defendant's Solicitors argued that no contract existed. The submissions continued up to the Rejoinder and were followed by the Adjudicator's decision in our Clients favour for a payment of £84,000.

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Contact

Mark Holden-Smith

07834284308

mark@holden-smith.com