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The case of Atwal v Rochester highlights the need for sole traders and consultants to consider making arrangements in the unlikely event they fall ill and are unable to fulfil their obligations under the contract.
Mr Rochester was a building contractor who entered into a contract with the client Atwal to undertake some building work at the home owned by Atwal. The work came to an end prematurely, and was incomplete, when Rochester fell ill and was advised not to work. Atwal claimed that Rochester had breached his obligations under the contract and sought to claim damages for the delay and the added expense of engaging another contractor to finish the work. Rochester counterclaimed and said that the contract was discharged by frustration rather than a breach and so was seeking payment of a just sum for the work that he had done.
The High Court held that Atwal’s claim was unsuccessful and agreed that the contract had been frustrated rather than breached. The reason for decision was that the court considered the contract was a personal service contract. This was because Rochester had agreed to undertake the work himself and personally manage any specialist work that needed to be undertaken by sub-contractors.
Frustration is a legal concept that allows for a contract to be discharged when an unforeseen event renders contractual obligations impossible to fulfil, or when some event takes place that significantly changes the performance of the contract contemplated when the contract was formed.
Bribery Act 2010
The Financial Times reported on 31 January 2011 that the Ministry of Justice has indicated that the Bribery Act, due to come into force in April, will be delayed. It is expected that the Bribery Act will come into effect three months after the publication of the guidance literature to accompany the legislation. This is currently being prepared. ACE will keep members up to date with the progression of the Bribery Act. For the most up to date guidance about the Bribery Act please view the guidance note written by Michael Archer, partner at ACE’s legal affiliates Beale and Company Solicitors LLP, which was featured on ACE’s website www.acenet.co.uk.
ACE would like to hear from members on how they are preparing for the introduction of the Bribery Act. All comments should be sent by email to Sharon Akumiah ACE’s senior legal assistant at sakumiah@acenet.co.uk
Local Democracy Economic Development and Construction Act 2009
Last year ACE reported that Part 8 of the Act which makes amendments to the Housing Grants, Construction and Regeneration Act 1996, most notably to the provision of payment notices and to adjudication, was likely to come into force in April 2011. It is now rumoured that the Act will come into force in October 2011 at the earliest. ACE will keep members informed on the progress of this Act.
Traditional Structures Ltd v HW Construction
In the case of Traditional Structures Ltd v HW Construction the court allowed a rectification of the contact due to a mistake made by one of the parties. The sub-contractor had faxed a quotation for the supply and installation of steelwork and roof cladding to the main contractor but had inadvertently omitted the price for the cladding work.
The main contractor argued that the quote they had received from the sub-contractor should cover all the works. The court held that that the main contractor had failed to clarify with the sub-contractor as to whether the price covered both works and must have realised that the sub-contractor’s quote was a mistake. The court decided that the contract should be rectified to reflect the fair price for the cladding which the sub-contractor was entitled to.
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