After reviewing the case study, it is seen that Sam wanted to renovate her restaurant that was in Sydney. For renovating it, she contacted three builders, but among them, she selected Acme Building Co Pty Ltd Company for this renovating project. She wanted to change the floor of the dining area and the kitchen with Penrose pattern, but due to some miscommunication, the builders unable to make the floor pattern like that of Sam’s desires. The main reason for this miscommunication was that Sam does not sent the link of the floor tiles to the builder whom she wanted to renovate her restaurant. Presence of such aspect did not allowed her to terminate the contract because in this case not only the builder was responsible for making different patterns but also Sam was responsible for not sending the links to the builder. Hence it is advised that Sam should not terminate the contract as it can increase her losses within the business procedures. It is seen that for terminating a contract, some critical criteria should have to be presented which are provided below:

• The contract is terminated only when the party failed to perform its obligation amount as per the mentioned agreement
• If the contract delayed due to some unethical reasons and without any prior notice, then the contract must be terminated
• Terminating a contract cannot allow the party to compensate for the losses that were taking place due to the contract dealer
• Termination of contract can only take place if the parties affects the future performance of the company, and they cannot overcome it in the coming days
• Termination of contract does not include any claim over damages as well as for any non-performance  
• Termination of contract does not affect the provision for the settlement related to any disputes and any other term of the contract  
• Termination does not take place when breaching arises in the contract

The Right to Terminate in Australia only occurs when one party does some unethical activities over the other parties. However, from the case study, it is noticed that both the parties have done something wrong regarding the contract. Thus considering the overall terms and condition, it is seen that if the contract is terminated then Sam cannot get any compensatory amount for the losses and she cannot claim for the damages that occured in the restaurant by the builders. Apart from this, the case study revealed that both Sam and the builder Dudley are responsible for the damages as if Sam sent him the link then he can make the appropriate designs in the restaurant. Due to this reason, it is advisable that Sam should not terminate the contract, but she should include some terms in the contract that can repay the damages of the restaurant. The terms that should be included in the contract are based on some laws and activities and with the help of these terms Sam can charge the builder for damaging the property in the coming days.   

After calculating the losses amount, it is essential for Sam to innovate the contract by introducing some new terms that should help her to reduce the loss amount. One of the conditions is that if compensatory damages occur, then, the party have to reimburse the whole amount and compensate the losses. If the incidental and consequential damages occur, then not only the contract gets terminated, but the builder has to pay the whole amount that was mentioned in the contract. Another term is that, if some offensive behavior is noted by the builder then the restaurant owner can take strict action against him that may cancel his license of working as a builder. Attorney’s fees are also to be recoverable if the damages are not managed in the coming days and it can affect the company’s performance. Hence these are prescribed terms that should be included in the contract of Sam after the losses of her restaurant. If the builder does not follows the terms incorporated by Sam in the contract, then several consequences may occur for breaching the contract.   

One of the consequences of breaching is that Sam should reduce the estimated price of the contract by following the theft and property damage, according to the law of Australia. According to this law, if some portion of the property is damaged, then a penalty, as well as compensation order, can be imposed on the builder. The penalty amount not only calculates the number of losses but also calculate the losses provided by the owner of the restaurant. Along with this, another consequence of not fulfilling the terms of the contract is that a reduction in the remedy of defeat. In this condition, the builder does not provides any remedy of the cause but he has to give the total losses amount to the owner of the restaurant. However, if in such a condition if the builder is unable to provide the amount, then Sam can take necessary steps by following the Prison Sentence, Suspended Sentence and Section 10 A Act of Malicious Australian damage of property law.

As per these laws, the builder must be suspended for his work, and he can also go to jail for not following the contract terms properly and also for damaging the restaurant’s property. Apart from this, another consequence that can take place due to the breaching of the contract is that the builder has to provide the amount of compensation as mentioned in the agreement. If the builder does not follows all the mentioned terms properly, then Sam should follow the Property Damage legislation under the Crimes Act of Australia. Several acts are present this legislation, but among them, Sam should follow the Imprisonment and Section 17 Act in order to compensate the total amount of the builder company. It is noted that under this law, the builder not only pays the costs but also the company have to give the interest amount that has been generated due to the delay of work. Hence these are the consequences that can take place due to the breaching of the contract.                                                              

References 

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