Question 1

Esther wants to renovate her house.

She invited quotations to repair and replace the taps and showers in her house (“Plumbing Works”) and replace the electrical sockets (“Electrical Works”).

Rebecca and Vanessa submitted quotations to Esther. Their quotations were as follows:

Esther wanted the works done fast and cheaper and intended to engage Vanessa for the Plumbing Works and Rebecca to install the Electrical Works.

Esther contacts Vanessa and tells Vanessa, “I want to engage you, but your price is too high.” There was much bargaining between Vanessa and Esther and the conversation ended with Esther saying $25,000.00 is the best she can accept for the Plumbing Works. Vanessa said he had to think about it. Esther then faxed to Vanessa cancelling the quotation for the Electrical Works. In respect of the Plumbing Works, Esther cancelled the price of $40,000.00 and wrote $25,000.00 – start this Monday – 9am. It was Friday evening when Vanessa saw Esther’s fax. As her secretary had gone home, she did not bother to reply.

On Saturday evening while out with her family for dinner, Vanessa bumped into Rebecca at the restaurant. In the course of the conversation, Rebecca was told by Vanessa that he had been engaged by Esther to carry out the renovations to Esther’s house. She did not know it was only for the Plumbing Works.

On Sunday morning, Rebecca bumped into Esther at the jogging track. Rebecca who was very concerned about appearances thought it was best to withdraw her offer/quotation rather than having Esther tell her that she has engaged someone else. Thus, before Esther could say anything, Rebecca told Esther, “Esther, about the quotation last week, sorry about it. I just got engaged for a big project and cannot service your house. Please find someone else.”

Esther did not wish to discuss business during the weekend and just left it as that.

On Monday morning, Vanessa turned up at Esther’s house at 9am and started work. Esther asked Vanessa whether he could also do the Electrical Works for a further $20,000.00 but was told by Vanessa that $30,000.00 was her best price.

Late that morning, Esther faxed to Rebecca and said in her fax, “Your quotation for Electrical Works is OK. Please start work by end of this week. I have already engaged someone else for Plumbing Works.”

Rebecca ignored Esther’s fax and refused to take Esther’s call.

That Sunday, when Esther bumped into Rebecca at the jogging track, she was told by Rebecca that Rebecca was “too busy” and could not work for her. Esther said she had signed Rebecca’s quotation and would sue Rebecca if she would not do.

Vanessa now says she is too busy for the Electrical Works.

Esther called for quotations from other contractors and subsequently engaged Olivia to carry out the Electrical Works for $60,000.00 as she was charging the cheapest amongst the other contractors.

Esther is furious with Rebecca and Vanessa for refusing to do the Electrical Works. She refuses to pay Vanessa for the Plumbing Works and wants to sue Rebecca and Vanessa for breach of contract.

Review the facts stated above carefully and thereafter demonstrate your understanding of the law by identifying the relevant issues and applying the relevant legal principles to the factual scenarios. Where applicable, please cite the relevant statute or case law.

Advise Esther in respect of her rights and liabilities to:

(a) Vanessa in respect of the Plumbing Contract.

(30 marks)

(b) Vanessa in respect of the Electrical Contract.

(10 marks)

(c) Rebecca.

(20 marks)

 (d) Would your answer to Q1(a) be different if Vanessa has replied to Esther’s fax and said “I accept”. Please discuss and give reasons for your answer.

(20 marks)

(e) Regardless of your answer in Q1(c), for the purpose of this sub-question, assume that Esther and Rebecca had entered into a binding contract for Rebecca to carry out the Electrical Works. What would Esther’s damages be and state the basis for your answer.

(20 marks)

 (Total: 100 marks)

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