Question

Anya enters into a contract with a local electrical company to install ceiling fans throughout her home. Unfortunately, the electrician did not correctly attach the lounge room fan causing it to fall onto Anya’s coffee table on which sat a sculpture that she had purchased for $3,000. The sculpture was damaged beyond repair. She seeks your advice as to whether she would be successful if she sued the electrical company for a breach of contract even though the written contract contained no term relating to the proper installation of the fans.

a)         State the issue you need to consider. (1mark)

b)        State the relevant legal rule relating to this problem. (1 mark)

c)         State the main case related to this problem. (1 mark)

Answer 1

a. Though the written contract did not contain any stipulation as to proper installation of the fans, it is implied in the contract. as the contract was for installation of fans, it need not be expressed in words, either oral or in writing, that the installation should be proper. Therefore, in the given situation, the service by the electrical company has been deficient, and there has been breach of contract.

b. Where there is breach of contract, the resulting damages will have to be paid by the party breaching the contract to the aggrieved party.

c. The question is whether Anya would be successful in recovering damages for her loss of $ 3,000 from the defendant by filing a suit. As there is no stipulation in the written contract limiting the amount of damages payable by the electrical company as a result of improper installation, Anya should be allowed to recover the whole amount.