On 11 August 2020, Vanya Ho entered into a contract with DiegoToh to renovate her school, The Umbrella Learning Centre and to setup the internet system for the school’s online lessons starting inOctober. They agreed to the total sum of $100,000 with a 10%deposit of $10,000 to be paid on the signing of the contract.$20,0000 was to be paid upon the design being approved by Vanya Ho.The balance of $70,000 was to be paid on the completion of therenovation works. The contract provided that Diego Toh was tocomplete the renovation works and handover the school to Vanya Honot later than 20 September 2020. The design was approved by VanyaHo on 18 August 2020. Diego Toh proceeded with the renovation whichwas completed on 19 September 2020. Vanya inspected the renovationwork on 20 September 2020. She was not pleased with the internetsystem when she tested the wifi connection. The wifi signals wereweak and created issues for running the online lessons. Diego Tohexplained that his electricians have gone back to Malaysia andwould only be back early 2021. He insisted that the renovationworks including the setting up of the internet system were inaccordance with the design as approved by Vanya. On 21 September,Vanya Ho called an independent electrician, Klaus Soh, to inspectand advise on internet system. Klaus Soh explained that theinternet system was poorly set-up. He quoted $2,000 to rectify thedefects which could be completed by 25 September 2020. On 22September, Diego Toh contacted Vanya Ho and demanded payment of thebalance amount of $70,000. Vanya Ho refused to pay the balance andinsisted that Diego Toh rectify the internet system by 26 September2020.
(b) Diego Toh would like to claim the full amount of $70,000.Discuss the LEGAL PRINCIPLES concerning the performance of thecontract, APPLY the legal principles, and CONCLUDE on whether DiegoToh could discharge the contract with Vanya Ho and claim the fullamount of $70,000.
