Question

Gerald is a contractor in construction company he was contacted by KERRA to construct Ngong road...

Gerald is a contractor in construction company he was contacted by KERRA to construct Ngong road to bitumen level at a cost of 380 million he has completed the job as per the evaluation and demanded payment. KERRA however refused to pay claiming that Gerald did not do drainage work as agreed. Gerald disputes that the contract with KERRA included drainage work and has insisted on payment. There is now a dispute Gerald is aware that you are a student of business law. He has come to you for advice. Advise him on various avenues that he may pursue to resolve his dispute with KERRA

Homework Answers

Answer #1

As far as this case of contract dispute is concerned, there are quite a few avenues to resolve. Let's see some common avenues:

  • Adjudicative process. This is most commonly followed in such situations. The process involves litigation in which the judge or the jury decides the outcome. Basically you are taking the issue to the court of law.
  • Consensual process. This includes negotiations, mediation, collaborative law, etc wherein both Gerald and KERRA try to reach an agreement which will be mutually beneficial.

The problem with the second point is that bargaining power of KERRA might outweigh that of Gerald and his construction company. So court of law should be preferred instead.

Hope this helps. Do hit the thumbs up. Cheers!

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