Throughout this module I developed the understanding that one of the most important issue in construction contracts is whether a contract exists in the first place. It is surprisingly common in the construction industry that the formation of a legally enforceable contract isn't given proper attention. This issue may cause parties to be handicapped when trying to claim for payment and rights under a supposedly formed 'contract', only to find that a Letter of Intent "subject to contract", depending on the drafting terms, usually can not be interpreted as a legally enforceable document.
Also, another issue that was brought to my attention was the remedies for breach of contract. There are so many variety of ways an innocent party can seek for damages from a breach of contract. There is also a case law that formed the basics of damages claimable, that is the case of Hadley v Baxendale, where it was laid down by the court that the damages has to be reasonably contemplated by the parties when forming the contract. Another alternative is to seek for quantum meruit when there is no legally enforceable contract in place.
To make matters more interesting, we also learnt that in the event of a breach of contract, the innocent parties usually resort to tort as well, and it is common to proceed a legal action in both contract law and tort law simultaneously.
In a nutshell, I found this module very interesting and practical, and I have gained substantial knowledge in construction contract law. I would like to thank our lecturer Mr Wong Chong Wei for his dedication in teaching us.
Regards,
Pang Khai Shuen
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