Wellbuild Pty Ltd: William & James Case Study- Law Essay Writing Assignment

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Internal Code: TV372
Law Essay Writing Assignment:
Task:
Scenario:
William was a builder who was asked by a developer, Rhys, to provide a quote for doing some building work on a big project that Rhys was working on.
After meeting Rhys onsite, William wrote out a quote on his quotation sheet, stating that the cost would be, “$40,000 including materials”. William also wrote Rhys’ name in the ‘customer details’ section.  William handed Rhys the quotation.
Rhys took the quotation and said, “I’ll get back to you about the job.”
On the back of the quotation sheet there was a small disclaimer which stated ‘This quotation is an estimate only. Costs may vary without notice.’
William didn’t hear anything for about three months, then he received a phone call from a lady named Naomi, who told him that she worked for Rhys’ company, Wellbuild Pty Ltd. Naomi said “We want you to go ahead with the work straight away.”
William asked another builder, James, to work on the project with him and agreed to equally split the labour costs with James. William told James that half the labour costs would be $10,000.  William and James shook hands on this.
William and James commenced work but quickly found out that the project was going to be much more difficult because of delays caused by other tradespeople on site.
William bought the materials for the build but the materials cost much more than he anticipated. A special tool that William often used also broke and William had to buy a replacement tool. This tool cost $10,000.
Six months later
, William and James were finished.

William sent Wellbuild Pty Ltd an invoice for $120,000, being $70,000 for labour and $50,000 for materials (including the value of the tool that William had to buy).

Rhys contacted William and said that he wouldn’t be paying anything because the company never authorised the work to be done and, in any event, he had a written quote for $40,000 including materials and he never agreed to the additional cost.

James was also putting pressure on William to pay him half the labour costs. William offered James $10,000 and said that was their agreement. James got angry and picked up the tool that William had bought and said, “$10,000 plus the tool.”

William, said “Ok” and paid him $10,000. James took the tool.

William later regretted giving James the tool so he called James and asked him to return the tool.  James refused saying that he would sue William for $35,000 if he had to give the tool back.

Advise William about his rights and obligations under the law of contract in relation to Ryhs , Wellbuild Pty Ltd and James

You must:

clearly identify the relevant legal issues

support your answer by reference to relevant legal principle and authority

Your answer should be in a short essay format, using headings relating to each advice you are providing and present a consistent and coherent argument.

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