Mr. Max Ang engaged Water Plumbing Pte Ltd (“WP”) to supply and install the following items in his master bedroom:

(i) A storage heater,
(ii) A toilet bowl,
(iii) A basin,
(iv) A shower set, a bidet spray, and bathroom accessories.

The total fee was $10,000. The payment was to be made “net cash as the work proceeds and the balance on completion.”

Mr. Max Ang made two payments totaling $6,000.

One month later, WP had completed all the work and requested payment of the balance of $4,000.

Mr. Max Ang complained that WP’s work was deficient as the heating system did not heat adequately and gave out fumes.

WP explained that the cost of rectifying the defect would only cost $1,000. WP was unable to rectify the defect as the company was undergoing restructuring.

The company no longer supplies and installs storage heaters. A new team of workers has been engaged to install solar water heaters and do not have the skill to rectify defects in storage heaters.

Nevertheless, Mr. Max Ang paid WP $1,000 and refused to pay the balance sum of $3,000. Mr. Max Ang was unsatisfied with WP’s explanation and sought a non-obligation consultation from Leaky Plumbing Pte Ltd (“LP”). LP investigated the defect and quoted a total fee of $800 to rectify the defect.

• Explain the 4 ways in which a contract may come to an end.
• Discuss the LEGAL PRINCIPLES concerning the discharge of the contract, APPLY the legal principles, and CONCLUDE Mr. Max Ang’s obligation to pay the balance sum of $3,000.

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