Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. salman signs a contract to build a warehouse in sy

Salman signs a contract to build a warehouse in Sydney for his client. They agree...

60.1K

Verified Solution

Question

Accounting

Salman signs a contract to build a warehouse in Sydney for his client. They agree on the price and time frame for the completion of the project. Salman hires two apprentices on lower wages than qualified tradespeople; he also hires another two labourers on a daily basis. Work is about to commence. But digging the foundation takes much longer than expected because Salman and his crew had to extract some large rocks embedded within the soil. The labourers he hired leave him and there are no other labourers he can hire on such short notice to replace them. One of the apprentices completes his apprenticeship and will not have to be paid full trade wages. The other apprentice leaves for Adelaide. Salman now has no labourers to finish building the warehouse. The cost of employing new tradespeople will mean that he will lose money in building the warehouse. He wants to terminate the contact and believes that he has grounds to do so due to frustration of contract. He then tells the client that he cannot proceed with building the warehouse but would like to be paid for the foundation work. (a) Can Salman correctly argue that the contract is frustrated? (b) Can he ask for payment for the foundation work done on the building?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Danielsen's has 15,000 shares of stock outstanding and projected annual free cash flows of $48,200, $57,900,...

Finance
Q

what does it imply if the efficiency of an engine is less than its corresponding carnot...

Mechanical Engineering
Q

Hedged Sale Commitment and Exposed Asset Position On June 25, 2020, GlobalAgra Inc., a U.S. company, received...

Accounting
Q

Find all the zeros of f(x) = 2x + 30x + 18x + 270

Basic Math
Q

iii Write the elements a3 a21 a332 a242 a23 2 If a matrix has 24...

Algebra
Q

many miles they run each week The following is the data collected from the team...

Algebra
Q

D E F H K L M N o B 1 30 pts. 2...

Accounting
Q

4. Pappa's Pizzeria owns and operates fast-service p izza parlors throughout North America. The firm...

Accounting
Q

All this is one question ...

Accounting
Q

Special Order William A. Smith Pest Control, Inc. (WASP) currently provides pest control services...

Accounting
Q

At the beginning of the year, Robinson County acquired a new storage building under a...

Accounting
Q

(QLD) If an agent uses a computerised accounting system (the system) to manage their trust...

Accounting