Question

The owner of a casino facility awarded a contract for renovation of the rooms and erection...

The owner of a casino facility awarded a contract for renovation of the rooms and erection of a new glass facade. The facade, while non-functional, was intended to attract customers to the renovated property. The contractor only completed the renovation of the rooms. Is the contractor entitled to payment? Why or why not?

Homework Answers

Answer #1

If the contractor has not fulfilled the other condition that is erection of new glass facade then it is a breach of contract as it is clearly mentioned that the contract is for renovation of the room and erection of new glass facade. He is not entitled for payment because if causes economic loss as the casino is not functioning and it woukd take additional number of days because now they have to find another contractor to do the work that will cause un necesaary economic loss and other losses would be loss of profit, if the property is rented then the rental value, loss of customers due to delay in functioning, customer loyalty, unnecessary expenses, loss of market value and competitors taking the leverage of these issues for attracting customers etc.

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