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\b\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 IN THE COURT OF APPEAL IN FIJI}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (CIVIL JURISDICTION)}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 BETWEEN}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 H.P. KASABIA BROTHERS LIMITED}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 AND}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 REDDY CONSTRUCTION COMPANY LIMITED}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li567\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin567\itap0\pararsid3434455 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid3434455 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [COURT OF APPEAL, 1977 (Gould V.P, Marsack J.A., Henry J.A.)\line 2nd, 3rd, 25th November]}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Contract - breach - whether failure or part of appellant to obtain building permit within a reaso nable time entitled respondent to treat contract at end - whether frustration supervened because permit not so obtained - whether performance of contract illegal through absence of valid building permit - Town Building Regulations reg. 12.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Damages - quantum - obligation to mitigate loss.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 After obtaining development permission to build a bulkstore, the appellant company entered into a formal building contract with the respondent company whereby the latter agreed to construct the bulkstore at a fixed price. Initial site clearance commenced but within a few weeks the respondent company ceased work stating that the building permit had not been formally granted by the Suva City Council that the contract had been determined.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Held:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 1. The duty re sted on the appellant company as owner to obtain the building permit within a reasonable time the extent of which would be a question of fact in all the circumstances. In the present case the respondent company had not given proper warning and opportunity for remedial action to the appellant company and had unilaterally determined the contract.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 2. There was no evidence to show that the contract had become commercially, fundamentally, or radically different from that contemplated when it was entered into.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 3. There was nothing in the contract which required the respondent company to commence work without a building permit and the contract expressly provided for what would happen in the event of delay in its issue.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 On appeal against quantum of damages - held:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 1. Eight months elapsed before the new contract was signed which was an unnecessary delay. This revealed a failure on the part of the appellant company to mitigate its loss to a satisfactory extent. A new contract ought to have been let on prices fixed by tender at the end of three months.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }\pard \ltrpar\ql \li720\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 2. The appellant company was entitled to the difference between an estimated competitive price of completion at the end of three months less the original contract price.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 3. A claim for the loss of gross rentals was proper and although the evidence was unsatisfactory and sketchy a reasonably estimate was $18,500.00.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Cases referred to:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Charnock v. Liverpool Corporation}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1968] 3 All E.R. 473; [1968] 1 W.L.R. 1498.}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Carr v. Berriman}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1953) 27 A.L.J. 23}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Parkinson Sir Lindsay & Co. Ltd v. Works & Public Buildings Commissioner}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~} {\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6431206 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%5b1950%5d%201%20All%20ER%20208" \\o "View LawCiteRecord"}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13728341 {\*\datafield 10d0c9ea79f9bace118c8200aa004ba90b0200000003000000e0c9ea79f9bace118c8200aa004ba90bb200000068007400740070003a002f002f007700770077002e007000610063006c00690069002e006f00720067002e00760075002f006300670069002d00620069006e002f004c006100770043006900740065003f00 6300690074003d002500350062003100390035003000250035006400250032003000310025003200300041006c006c00250032003000450052002500320030003200300038000000795881f43b1d7f48af2c825dc485276300000000a5ab0000}}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \cs16\ul\cf2\lang2057\langfe1033\langnp2057\insrsid4392595 [1950] 1 All E.R. 208.}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid2755062\sftnbj {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Aruna Mills Ltd v. Dhanrajmal Gobindram}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\field\fldedit{\*\fldinst { \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6431206 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%5b1968%5d%201%20All%20ER%20113" \\o "View LawCiteRecord"}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13728341 {\*\datafield 10d0c9ea79f9bace118c8200aa004ba90b0200000003000000e0c9ea79f9bace118c8200aa004ba90bb200000068007400740070003a002f002f007700770077002e007000610063006c00690069002e006f00720067002e00760075002f006300670069002d00620069006e002f004c006100770043006900740065003f00 6300690074003d002500350062003100390036003800250035006400250032003000310025003200300041006c006c00250032003000450052002500320030003100310033000000795881f43b1d7f48af2c825dc485276300000000a5ab0000}}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \cs16\ul\cf2\lang2057\langfe1033\langnp2057\insrsid4392595 [1968] 1 All E.R. 113}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid2755062\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 ; 1968 2 W.L.R. 101.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Bank of Australia v. Palmer [1897] A.C. 540}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Prenn v. Simmonds}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1971] 3 All E.R. 237; [1971] 1 W.L.R. 1381}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 James Miller v. Whitworth Estates}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6431206 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%5b1970%5d%201%20All%20ER%20796" \\o "View LawCiteRecord"}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13728341 {\*\datafield 10d0c9ea79f9bace118c8200aa004ba90b0200000003000000e0c9ea79f9bace118c8200aa004ba90bb200000068007400740070003a002f002f007700770077002e007000610063006c00690069002e006f00720067002e00760075002f006300670069002d00620069006e002f004c006100770043006900740065003f00 6300690074003d002500350062003100390037003000250035006400250032003000310025003200300041006c006c00250032003000450052002500320030003700390036000000795881f43b1d7f48af2c825dc485276300000000a5ab0000}}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \cs16\ul\cf2\lang2057\langfe1033\langnp2057\insrsid4392595 [1970] 1 All E.R. 796}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid2755062\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 ; [1970] A.C. 572}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Wickman Machine Tool Sales v. Schuler (L)A.G.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1972] 2 All E.R. 1173; [1973] 2 All E.R. 39.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Watcham v. Attorney \endash General of East Africa Protectorate}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1919] A.C. 533.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Davis Contractors Ltd v. Fareham D.C.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1956] A.C. 696; [1956] 2 All E.R. 145.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Anderson v. Daniel}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1924] 1 K.B. 138;}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6431206 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=40%20TLR%2061" \\o "View LawCiteRecord"}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13728341 {\*\datafield 10d0c9ea79f9bace118c8200aa004ba90b0200000003000000e0c9ea79f9bace118c8200aa004ba90b8e00000068007400740070003a002f002f007700770077002e007000610063006c00690069002e006f00720067002e00760075002f006300670069002d00620069006e002f004c006100770043006900740065003f00 6300690074003d003400300025003200300054004c005200250032003000360031000000795881f43b1d7f48af2c825dc485276300000000a5ab0000}}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \cs16\ul\cf2\lang2057\langfe1033\langnp2057\insrsid4392595 40 T.L.R. 61.}}}\sectd \ltrsect \linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid2755062\sftnbj {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Strongman (1945) Ltd. v. Sincock}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1955] 2 Q.B. 525; [1955] 3 All E.R. 90.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Hadley v. Baxendale}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1854) 9 Exch. 341; [1843 \endash 60] All E.R. Rep. 461.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Daufos v. C. Czarnikov Ltd.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1969] 1 A.C. 350.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Vaile v. Rice}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1912] A.C. 238.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Robins v. National Trust}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1927] A.C. 515;}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6431206 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=43%20TLR%20243" \\o "View LawCiteRecord"}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13728341 {\*\datafield 10d0c9ea79f9bace118c8200aa004ba90b0200000003000000e0c9ea79f9bace118c8200aa004ba90b9000000068007400740070003a002f002f007700770077002e007000610063006c00690069002e006f00720067002e00760075002f006300670069002d00620069006e002f004c006100770043006900740065003f00 6300690074003d003400330025003200300054004c0052002500320030003200340033000000795881f43b1d7f48af2c825dc485276300000000a5ab0000}}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \cs16\ul\cf2\lang2057\langfe1033\langnp2057\insrsid4392595 43 T.L.R. 243.}}} \sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid2755062\sftnbj {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Appeal and cross appeal from a judgment of the Supreme Court awarding damages to the appellant company.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 R. I. Kapadia}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid3434455 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 for the appellant company.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 B. Sweetman}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 for the respondent company.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The following judgments were read: (25}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 November 1977)-}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 GOULD, V. P:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 This is an appeal and cross appeal from a judgment of the Supreme Court. For convenience, I will follow the mode of reference in the judgment and will refer to the appellant company (respondent to the cross appeal) as the plaintiff, and to th e respondent company (appellant in the cross appeal) as the defendant.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The plaintiff brought the action in the Supreme Court against the defendant for breach of a building contract entered into by the parties on the 6}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 March 1973, claiming special and ge neral damages. The allegation, in brief, was that the defendant having proceeded with the work under the contract for a short period, ceased work in breach of his obligations and refused to resume. The claim for special damages was for the sum of$130,780. 47 being the excess of the price of a new contract to complete the work, over the original contract price, and in addition quantity surveyor's fees $5,286.92, additional architect\rquote s fees, $9,154.63, loss of rental income $89,474.00. and extra Fiji National Provident Fund interest $15,397.19.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The defence, in brief, was that work had been discontinued because of the plaintiff\rquote s failure to comply with an alleged implied team, of the contract that it would obtain approved plans and a building permit within a r easonable time of the signing of the contract. Also, based upon the same failure, the defendant relied upon defences of frustration and illegality of contract.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In a long and painstaking judgment the learned trial judge rejected the defence raised, so far as the question of liability went, and gave judgment for the plaintiff. In the cross appeal, the defendant challenges the judgment in this respect. The damages awarded were much less than the amount claimed. The claims for quantity surveyors fees, loss o f rental, and for interest, were disallowed; $39,550 was allowed for additional building cost and $2,768.50 for additional architect\rquote fees - a total of $42,768.50. In his appeal against this award the plaintiff asserts generally that the leaf learned judge\rquote s failure to allow the amount claimed in full is against the weight of evidence and unreasonable; as to the main head of damages it was said that the learned judge correctly held that the rule in}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Hadley v. Baxendale}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 applied, but failed to apply the principles thereof strictly in assessing damages.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The logical approach to this matter requires that the cross appeal be considered first. The sequence of events is conveniently summarised in the judgment under appeal and I will quote part of this:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \fi-432\li432\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin432\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-709\li1418\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1418\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93(1) \~\~\~\~ I n or about late 1970 the plaintiff through its managing director Mr. Parshotam Kasabia, (P.W.4), engaged Biggs, Power & Co., a firm of architects and engineers (hereinafter called \'93the architect\'94 ) to prepare plans and specification for the construction of a bulkstore on its vacant land (C.T. 5569) in Amy Street, Suva and to act as its agent in connection therewith.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (2) \~\~\~\~\~\~ An application for approval in principle of the bulk store was made to the Suva City Council (hereinafter called \'93the Council\'94).}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \fi-709\li1418\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1418\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-709\li1418\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1418\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (3) \~\~\~\~\~\~ By letter dated 12}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 August 1971 (Ex. 5 d. 1) the plaintiff was informed that the Town Planning Board had approved in principle the construction of the bulkstore in Amy Street.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (4) \~\~\~\~\~\~ On 11}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 August 1972 the architect applied on behalf of the plaintiff for the development permission to build the bulkstore in accordance with plans and specification which were lodged with the application forms.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (5) \~\~\~\~\~\~ On 28}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 November 1972 development permission was granted.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-288\li288\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin288\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-709\li1418\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1418\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (6) \~\~\~\~\~\~ In or about February 1973 Mr. Kasabia approached Mr. Ranga Reddy (D.W. I) a personal friend and managing director of the defendant to tender for the job and provided Mr. Reddy with a copy each of the plans (Ex.3) and specification (Ex.2) and the bill of quantities (Ex16).}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (7) \~\~\~\~\~\~ By letter dated 21st February 1973 and addressed to the architect the defendant submitted a tender for the job at a fixed price of $240,450.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (8) \~\~\~\~\~\~ On or about the 21st February 1973 the plaintiff accepted the defendant\rquote s tender.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (9) \~\~\~\~\~\~ On 26th February 1973 the defendant commenced clearing the construction site which was overgrown with weeds and trees.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (10) \~\~\~\~ On 6th March 1973 the parties signed the formal building contract (Ex.5 d. 10) for the construction of a bulkstore in Amy Street.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-709\li1418\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1418\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (11) \~\~\~\~ Towards the end of March 1973 the defendant ceased work on the site.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 On the 26 March 1973, the defendant wrote to the plaintiff a letter in the following terms:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 The above works has been suspended for reasons known to you. Thanking you.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li144\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin144\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 After this laconic communication there were no more letters until towards the end of April. Meanwhile,}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\insrsid4392595 Mr}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 . Kasabia, who was concerned to get the work started again, and Mr. Reddy had conversations. According to Mr. Kasabia\rquote s evidence Mr. Reedy asked for a further $35,000 on the contract price as a condition for recommencing, but Mr. Reddy said no figure had been mentioned. He admitted that he wanted to re - negotiate the contract price and wanted Mr. Kasabia to agree to meet half the cost of pre-stressing materials. He repeated this in a letter dated the 24}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Aprir 1973, which he wrote to Mr. Kasabia, and which ended:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 As discussed we are prepared to proceed with the works as quoted provided you meet fifty percent cost of pre - stressing materials.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The learned judge\rquote s summation of this evidence was that Mr. Reddy was in fact affected by the lack of a building permit, but that Mr. Reddy felt that it was a factor which had put hi m in a good bargaining position, even to the extent of opting out if necessary. Later in his judgment, when he was considering the evidence as a whole, the learned judge enlarged his view on this subject and I will return to that at a later stage.}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 To con tinue with the correspondence, there is a letter dated the 24}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 April, 1973 from the architects to the defendant, as follows:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93I refer to your letter of 26}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 March 1973.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I am writing to inform you that you are in a default in that you have wilfully refused to carry out your obligations under the contract dated 6}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 March 1973.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 You are required to remedy the default within 5 working days failing which the Employer, H. P. Kasabia Bros Limited shall be entitled to determine the Contract.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The reply to that, dated the 26}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 April 1973, was in the following terms:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 We acknowledge receipt of your letter of 24}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 April 1973 with reference to default by our Company under the terms of the Contract.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Firstly, we have not yet been given a copy of the signed Contract Documents.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Secondly, a Contract can only be made when it is established that it can reasonably be carried out. This is, as yet, not established that we have not seen the Approved Plans nor sight the Building Permit.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Thirdly, in order to carry out the Contract in accordance with your General Instruction 03 of 1B-01 page of the specification, we must conf orm at all times with the By - laws. In compliance of this clause we are not in default. We have simply stopped the works pending Council approval of the scheme.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li576\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 With the whole of the above taken into account, we inform you that the Owner is in default in that he has not obtained the Building Permit as required under Clause 03 page 1B-01 of the specification and therefore we shall be entitled to determine the Cont ract.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 You have been informing us for several weeks now (contract signed on 6}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 March) the plans and specification have not been collected from}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Suva City Council but we have been informed by the City Engineer\rquote s Department that they are not approved yet. In all our experience as Contractors in this country we have never known of such a long time-lag in this simple operation.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \fi288\li288\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin288\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 We now wish to apply for our Progress Payment in the sum of Three Thousand Dollars ($3,000.00) for the amount of Drainage and Site works carried out as instructed.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The next letter, from the architects to the defendant, bears the date 1}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 st}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973, but I will add a word about this, after setting out the text which is:}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li288\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin288\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93I refer to your letter of 26}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 April 1973.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \fi288\li0\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li288\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin288\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The General Conditions of Contract state that \'93the Contractor shall be entitled to have a signed copy of the Contract Documents\'94. I understand your letter to be a request for these and I am having Photocopies made.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi288\li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li288\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin288\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The non - availability of permits is a ground for extension of time of completion not grounds for determining the Contract (see clause 31.1 c3 G.C. of C.) The Contractor is required under this clause to notify the Architect. This you have not done because the lack of a building permit links ha s not in fact delayed the work. The permit is now is now in our hands, and we request that you return to the site without further delay and remind you of your stated completion time of 30 working weeks.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li288\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin288\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li288\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin288\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Regarding your claim for a progress payment of $3,000. I would remind you that I wrote to you on the 9}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 March asking for proof of insurance, progress schedule and schedule of values by trade totalling the contract amount. You are required to submit the latter before any progress certificate can be issued a nd I am also at present temporarily obliged to with - hold the certificate under clause 1B - 15(f) of the Specification (Payments With - held). Your return to the site will of course rectify .\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 It will be seen that the letter states that the permit is in the architect\rquote s hands, but in fact the permit was not issued until the 3}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 rd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973, two days later. The explanation as given to the court, is that the architect was expecting the permit on the permit on the 1}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 st}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May, and when it did not arrive he held up the latter. The letter therefore, was actually sent on the 4}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May, after the approval of the permit.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The next letter is dated the 2}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 nd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973, and is from the defendant to the architects:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li432\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin432\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 Since the project was negotiated some two months ago, we have became more heavily committed with projects which are approved and which works have started and therefore we exercise our prerogative not to carry out the works.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li432\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin432\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 We are forced to withdraw from the building of these works as we have not sighted approved plans or the Building Permit."}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Then on the 5}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973, the plaintiff's solicitors wrote to the defendant as follows:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 I act for Messrs. H. P. Kasabia Bros. Limited.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I have perused all the correspondence between yourself on the one hard and my clients and their architects Messrs. Biggs, Power & Co. on the other.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 It is quite clear that you are now in breach of your building contract with my clients. You are hereby given 7 days' notice within which to resume work and perform your obligations under the contract and remedy your breach.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 TAKE NOTICE that if you fail to do so, my clients reserve their rights to take such action as they may be advised, in which event you will be held liable for all extra costs incurred and all loss and damage resulting from the delay iii the completion of work."}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The reply to that letter was dated the 2nd May 1974, almost a year later.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The question of the building permit lies at the centre of the whole case for the defendant on the issue of liability. Mr Sweetman's submission was that the obligation to obtain it was clearly that of the plaintiff. The learned judge agreed, on the basis of the provisions of the specificati o ns supported by evidence of a trade practice that when an architect is engaged he obtains the building permit on behalf of the owner. That is what occurred here, and the application for the permit was made for the owner a substantial period before the con tract was entered into. Mr Kapadia, for the plaintiff, argued that the written contract as a whole was contrary to this interpretation. He relied upon general condition 11.2 of the contract:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li709\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin709\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 11.2 The Contractor shall give notices and obtain the necessary permits and shall pay charges of every kind to such authorities in respect of works.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 This provision, it was submitted, prevailed over the following passage in the specifications (1B-01;03):}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li709\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin709\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 "The Owner shall obtain the Building Permit and pay the Building Permit fee.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-11\li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 All other permits shall be obtained and paid for by the Contractor who shall give all notices in connection with the work .....\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li144\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin144\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 To bring home his argument, however Mr Kapadia points to Appendix 1 to the general conditions which re quires that amendments or additions to the general conditions made in the specifications are required to be entered in item 14 of the appendix: otherwise by general condition 8.1. the special condition shall not take precedence over the general conditions . The instruction 1B \endash 01;03 was not so noted in item 14, and therefore, Mr Kapadia contends, the provision in the specifications that the owner shall obtain the building permit is inoperative.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li144\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin144\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I am quite satisfied that the learned judge was correct in de ciding that this duty rested upon the plaintiff as owner. It is a possible construction of the provisions that the general condition was confined to permits relating to the works undertaken to be done and that the building permit was a special case outsid e that category. The plans and specifications were all prepared on behalf of the plaintiff and tendered by him to the defendant. The building permit had already been applied for and the plaintiff or his agent the architect assured the defendant more than o nce that the permit would shortly be forthcoming. It was never suggested that the defendant any duty in the matter and all the circumstances justify a construction}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 contra proferentem}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 of the relevant provisions of the contract. I would therefore adopt the construction I have suggested above.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 This finding, however, does not take the defendant far enough. Specification provision 1B-01;03 merely indicates that the duty of obtaining and paying for the building permit, lay upon the plaintiff. Mr. Sweetman\rquote s subm ission is that is their, circumstances, where no time has been fixed for discharge of that duty, the law implies a term that the permit shall be available within a reasonable time what is reasonable being a question of fact to be decided having regain to all the circumstances. A statement to that or similar effect is made in 9 Halsbury\rquote s Laws of England (4}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Edn) paragraph 479 regarding the law of contract generally, and we were referred to}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Charnock v. Liverpool Corporation}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1968] 3 All E.R. 473.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The lear ned judge made no specific finding as to whether there was such implied term in the present case. Instead he grouped his reasons for holding that the argument based on the non-availability of the building permit was untenable under three heads. First the delay in issuing the permit had been envisaged in the Contract by General Condition 31.1. That provides that the time for completion shall be extended if \'93such completion of the works is delayed by reason of (a) Non-availability of permits ...\'94 . This was a fixed price contract and in the learned judge\rquote s view the defendant ought to have allowed for risk of delay arising from this cause, when fixing his price. While I agree that here was a provision which made available certain relief to the defendant, I would not consider that it negates the possibility of an implied term that the building permit be obtained within a reasonable time. That permit occupied a special position in that without it, it would be unlawful to proceed with an actual building. That, with o ut the permit, would constitute a breach of regulation 12 of the Towns (Building) Regulations; work on the site prior to the actual building stage would appear to be covered by the approval already given by the Town Planning Board. Though the defendant kn e w that the building permit had not been given when the contract was signed, he was told it would not be long delayed and it would be contrary to common sense to say that either party considered that the defendant was bound to continue working right throug h to completion, without the permit having been issued.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The second of the reasons given by the learned judge is that there was nothing to have prevented the defendant from enquiring direct from the City Council concerning the permit. He could easily have found out whether there was any real danger of the permit not being issued at all. There was no ground upon which the defendant could have seriously doubted the architect\rquote s ability to obtain the permit. The defendant\rquote s alleged concern about having to perform the contract illegally must be discounted for these reasons.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Thirdly, the defendant did not give the plaintiff formal notice of the reasons for suspending work in accordance with general condition 30(3). This reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi720\li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'9339.3 The Contractor shall be ent itled to determine the Contract by receipted notice to the Employer under his hand or the hand of his solicitor in any of the following circumstances:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li1152\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1152\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (c) If the prosecution of the Works is suspended or delayed through any action or default of the Employer, or through legal proceedings instituted by third parties against the Employer}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 AND}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi720\li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The Contractor has, by notice in writing, required the Employer, within 10 Working Days, to take appropriate action to remedy such suspension or delay and the Employer has not taken such remedial action within such period.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 It is under this head that the learned judge expanded his view that the building permit was secondary in the mind of the defendant.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The judgment reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 That the question of the building permit was not the dominant reason for the defendant\rquote s action in terminating the contract may be gathered from its rather equivocal and unbusinesslike approach to the matter during the period between 26}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 March 1973 and 2}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 nd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973 when the defendant finally stated in express terms it was withdrawing from the contract because it had not sighted the approved plans or the building permit. If the issue about the building permit had been so vitally important to the defendant from the beginning and not merely incidental, this fact would have been made known to the plaintiff by the defendant in clear and unmistakable terms as soon as work was suspended on 26}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 March. However, what the defendant did instead was to send a curt and rather unhelpful note saying \'93works have been suspended for reasons known to you\'94 . It seems to me that the question relating to the building permit only assumed importance so far as the defend ant was concerned after the plaintiff had refused to agree to have the costs of the job re-adjusted. The was in April 1973. It was I think after such refusal, the defendant saw a possible leverage against the plaintiff in the continued lack of the buildin g permit.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The learned judge had seen and heard the witnesses and this expression of his view may well have been justified, but the defendant\rquote s motive would not prevent his case from succeeding if it were otherwise sound.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In my judgment it would have been right to imply in this contract an additional term that the plaintiff would fulfil his obligation to obtain a building permit within a reasonable time. It is not necessary to decide as a fact what a reasonable time would h ave been in the circumstances, because the defendant did not take the necessary step to avail himself of such an implied term. If he wished to do so it was essential that he should have made it clear to the plaintiff that in his view there was such a term and that he relied upon it as a term the breach of which entitled him to determine the contract. He would be obliged to allow time to the plaintiff to remedy the breach and the time could hardly be shorter than the ten days indicated in General Condition 39(3). In fact what he did was to send the incomprehensible letter of the 26}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~ }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 March 1973; Mr Kasabia said they thought it related to the strike of building employees. Then on the 26}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 April 1973, in answer to a letter alleging that it was in default, the defendant wrote the letter of the 26 April 1973, containing the sentence, \'93We have simply stopped the works pending Council approval of the scheme\'94 , giving the impression that it was still awaiting the permit. In that letter the defendant did allege that th e plaintiff was in default over the permit but did not specify a time within which the plaintiff was called upon to remedy the breach. In fact, on the same day he wrote a letter to Mr Kasabia containing the sentence I have quoted, that he would be prepare d to continue if half the cost of pre-stressing was met by the plaintiff. On the 2}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 nd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973, one day before the permit was signed, the defendant \'93withdrew\'94 on the ground that it had not sighted approved plans or permit. There is evidence which indicates t hat, the issue of the building permit was never really in doubt and the architect, Mr Biggs, said that he ascertained that the cause of the delay was the absence of the senior engineer, Mr Solanki, from the country.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 If the defendant had any rights in this matter he forebore to exercise them until it was too late and the default upon which he is now relying was remedied.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Mr Sweetman sought to meet this situation by an argument that time was or the essence so far as the building permit was concerned. I am quite unable to accept that an implied obligation to do something within a reasonable time can fall into such a categor y except perhaps in most unusual circumstances. If the parties require performance by a certain date they will specify it. Where they do not and there is an implication that the time allowed will be a reasonable one, a question of fact in all the circumsta n ces, it is not for one party to decide in his own mind upon a specific date and say that beyond that date the other party is in default, without giving proper warning and opportunity for remedial action to the other party by the usual and appropriate noti ces. This argument fails.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Mr Sweetman also put forward, on the authority of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Carr v. Berriman}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6431206 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%281953%29%2027%20Australian%20Law%20Journal%20273" \\o "View LawCiteRecord"}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13728341 {\*\datafield 10d0c9ea79f9bace118c8200aa004ba90b0200000003000000e0c9ea79f9bace118c8200aa004ba90bd800000068007400740070003a002f002f007700770077002e007000610063006c00690069002e006f00720067002e00760075002f006300670069002d00620069006e002f004c006100770043006900740065003f00 6300690074003d002500320038003100390035003300250032003900250032003000320037002500320030004100750073007400720061006c00690061006e002500320030004c00610077002500320030004a006f00750072006e0061006c002500320030003200370033000000795881f43b1d7f48af2c825dc485276300 000000a5ab0000}}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \cs16\ul\cf2\lang2057\langfe1033\langnp2057\insrsid4392595 (1953) 27 A.L.J. 273}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid2755062\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 , that a right to rescind can arise, not as a result of any of the time provisions of the contract, but arising out of the conduct of the guilty party, which evidences a refusal to be bound by the contract. I do not think that such a situation could be said to ha ve arisen here. The plaintiff\rquote s attitude, from the time it was notified that work had ceased, was to persuade the defendant to resume. Mr Kasabia even considered raising the contract price as requested by Mr Reddy but was advised by Mr Biggs not to do so. M r Biggs forwarded the building permit as soon as he could obtain it. The plaintiff\rquote s attitude was neither obstructive nor reluctant\endash in fact. The opposite.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The next ground relied upon for the respondent was a plea that the contract had been frustrated by the lack of a building permit through the fault of neither party. It was claimed that the circumstances were such that the fulfilment of the contract would have been so postponed that it would have involved something fundamentally different from that cont emplated in the contract. Counsel relied upon a passage in the judgment of Asquith L.J. in}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Sir Lindsay Parkinson & Co. Ltd. V. Works & Public Buildings Commissioner}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\field\fldedit{\*\fldinst { \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6431206 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%5b1950%5d%201%20All%20ER%20208" \\o "View LawCiteRecord"}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13728341 {\*\datafield 10d0c9ea79f9bace118c8200aa004ba90b0200000003000000e0c9ea79f9bace118c8200aa004ba90bb200000068007400740070003a002f002f007700770077002e007000610063006c00690069002e006f00720067002e00760075002f006300670069002d00620069006e002f004c006100770043006900740065003f00 6300690074003d002500350062003100390035003000250035006400250032003000310025003200300041006c006c00250032003000450052002500320030003200300038000000795881f43b1d7f48af2c825dc485276300000000a5ab0000}}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \cs16\ul\cf2\lang2057\langfe1033\langnp2057\insrsid4392595 [1950] 1 All E.R. 208}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid2755062\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 , 229 where he referred to a delay or interruption fundamental enough to transmute the job the contractor had undertaken into a job of a different kind which the contract did not contemplate.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I am unable to agr ee that the present circumstances were such as to bring the case within these principles. Even accepting for the sake of the argument that the matter ought to be assessed from the point of view of the defendant prior to the actual granting of the permit, the contract itself entitled him to an extension of time for any delay. I do not think that the question of whether his costs might have gone up in the interim is relevant\endash the point is that the contract covered the situation and the work would have been com pleted as contemplated by the contract. As I have indicated also the defendant could, in my opinion, have claimed an implied term limiting his dilemma to a reasonable time. In my view this was not a case of frustration.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The answer to Mr Sweetman\rquote s final argument on this aspect of the case, that a continuation of the contract would have involved it in illegality, must be much the same. There was no finding in the Supreme Court as to the exact point at which work in progress would have arrived at a point p a st which it could not proceed without a building permit. It was common ground that by virtue of the approval give a by the Town Planning Board preparatory work could be done, but it is also clear that the granting of the building permit was necessary befo re the building proper could have been embarked upon. To have done so without the permit would have been illegal\endash see 4 Halsbury\rquote s Laws of England (4}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Edn) paragraph 1228. But the contract provided for what would happen in the event of delay in the issue of a permit; it was never the intention of the parties that the contract should be performed in an illegal way. If the additional time to which the defendant would become entitled was an inadequate compensation that was unfortunate for him, but he had enter ed into the contract on those terms and must accept them. I cannot agree that the defendant was entitled to any relief on the ground of supervening illegality.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In the result in my judgment the cross appeal fails and the question of the quantum of damages must now be considered. On this subject the court was requested by both counsel to make its own assessment of damages, if the occasion arose, rather than send the case back for re\endash assessment.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The first head under which special damages were claimed was th at of the difference in the contract price between that entered into with Group Construction (Fiji) Ltd., ($371,230\endash 47) and the contract price of the defendant ($240,450.00), the sum of $130,780\endash 47. I will refer to the former as \'93 the Group\'94. Their tender was actually $341,092.00 but it was on a \'93fluctuating\'94 basis allowing for adjustments according to the rise or fall in costs of labour and materials. Additional costs were incurred bringing the total to $371,230.47. The learned judge was of opinion that the claim for the additional $30,138\endash 47 was misconceived though, on the basis he finally made his award, this was immaterial.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \fi-288\li288\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin288\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 As to this fast head of d amage the law is clear and the difference between the original contract price and the actual costs of completion, is recoverable. A plaintiff, however, must take all reasonable steps to mitigate his loss, the burden of proving that he has not done so bein g upon the defendant.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In considering these questions the learned judge related the sequence of events; which I summarise as follows from his judgment; the letter of the 5}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973, to the defendant giving it seven days to resume work has already been set out.}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 1. On the 7}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 and 13}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 of June 1973, the Plaintiff through the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Fiji Times}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 invited building contractors interested in tendering to register their names with the architect. Several building contractors responded.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 2. On the 13}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 July 1973, the architect received the following letter from the President of the Fiji Master Builders Association:} {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li1440\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93Dear Sir,}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li3600\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin3600\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Re: Kasabia Bros. Tender}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri432\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin432\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li1440\ri432\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin432\lin1440\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I have been requested by members of my association currently tendering the above project to advise you of our current tendering policy.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri432\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin432\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li1440\ri432\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin432\lin1440\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 To provide the client with an accurate tender without guessing the projected fluctuations and to provide the builder with reasonable protection , the following has been considered essential on contracts in excess of $100,000.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-288\li1728\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin1728\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-288\li2448\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin2448\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (a) A properly prepared Bill of Quantities which is deemed to be a}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 ,}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 contract document.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li2160\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin2160\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (b) Rise and fall clauses on both labour and materials.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li720\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li1440\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin1440\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 As regards item (a) the tenderers feel that the schedule provided is inadequate and would necessitate price padding to cover possible eventualities.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li1440\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin1440\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li1440\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin1440\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I would therefore like to request on behalf of these members tendering that a proper Bill of Quantities be provided.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 3. The plaintiff arranged with an overseas firm of Quantity Surveyors, A.H. Carstens & Associates, of New Zealand to prepare a bill of quantities. That was received about the 18}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 September 1973.}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 4. On the 20}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 September 1973, the plaintiff wrote to all interested building contractors enclosing necessary documents, including the bill of quantities. The closing date was the 15}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 October 1973, but this was extended to the end of the month.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \fi-288\li1008\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1008\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-288\li1008\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin1008\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 5. Of nine tenders received the Group\rquote s was the lowest, at a fluctuating price of $341,092.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 6. On the 6}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 November 1973, the Group\rquote s tender was accepted.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In considering the matter from the point of view of mitigation, the learned judge came to the conc lusion that the time which had elapsed between the termination of the first contract and the letting of the second was inordinate. He observed that it took almost eight months for the plaintiff to find another building contractor to replace the defendant, and made the following points:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-698\li1418\ri4\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin4\lin1418\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1) \~\~\~\~\~ The plaintiff should have realised that the time element was extremely important because of its relevance to costs, particularly when the building industry was experiencing a boom period.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (2) \~\~\~\~\~ There was lit tle to justify the delay arising from the concession to the Fiji Master Builders Association in the matter of the bill of quantities. The delay caused by that episode was clearly inexcusable in the context.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (3) \~\~\~\~\~ Not all building contractors in Fiji were members of the Association and the final successful bidder was not a member of the Association.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (4) \~\~\~\~\~ There was no justification for the plaintiff to go outside Fiji to obtain a Quantity Surveyor.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (5) \~\~\~\~\~ The plaintiff should have called for fresh tenders upon the same documents, plans and specification and bill of quantities upon which the defendant had originally tendered.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I pause here to say that Mr Kapadia made a point that these documents had been u sed originally in calling for new tenders. I have no doubt that the learned judge appreciated that but referred to the fact that the new bill of quantities was substituted before actual tenders were made.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 As a conclusion from his consideration on the del ay question the learned judge held that there was no cogent reason why a substitute contractor should not have been engaged by the end of June 1973. It was therefore necessary for the learned judge to estimate what a contract could have been let for at th at date. Again I set out the points made by the learned judge:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 1. In April, by agreeing to the defendant\rquote s suggestion re pre\endash stressing materials the plaintiff could have had the work completed for about $275,450.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 2. In October 1973, the Group \rquote s price was $341,092, an increase of $10,940.33 per month.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 3. The increase would not have been an even one but more stable during the first half of the year than during the second half.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 4. In May 1973 Raghwan Construction Co. Ltd would have accepted the job at $265,000.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 5. Therefore towards the end of June a more likely completion price would have been $280,000.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The learned judge therefore accepted that figure as a proper basis and awarded damages under this head in the sum of $39,550 being $280,000 less $240,450, the defendant \rquote s contract price.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The question now arises whether the plaintiff, who brings the appea l, has been able to demonstrate that those findings by the learned judge are wrong. I take first the finding that there was a failure, by reason of delay, to mitigate damages to a satisfactory extent. In approaching the subject the learned judge mentioned that the method of calling for tenders was not utilised in the case of the contract with the defendant. That was a private approach as Mr Kasabia and Mr Reddy had been friends for a long period. I do not understand that the judge was suggesting by way of c riticism that private negotiation should have been attempted again. He does not say so in as many words. However that may be, it is clear from the judgment that the main criticism was directed to the action taken by the plaintiff on receipt of the letter of the 13}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 July 1973, from the Fiji Master Builders Association. At that stage advertisements for contractors had been made and there had been nine replies. To six of those, according to the evidence of Mr Biggs, plans and specifications and schedules of q uantities were sent. They also sent conditions of tender\endash the closing date was 31}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 st}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 July , which was extended. The plans and specifications were the same that went to the defendant. As to the schedule of quantities the only one existing in July was the original one and Mr Kapadia assured us that it was used.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 On the 23}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 rd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 July 1973, the archit ect wrote to those persons advising them of the letter from the Fiji Master Builders Association and asking them to retain the plans and specifications until further notice. As I understand the case, no further advertisement was made and those persons, so me of whom were and some not members of the Association were the final tenderers some three months later.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Mr Biggs said concerning this procedure- \'93We had to comply with the conditions sought.\'94; and in cross\endash examination, he said, \'93I had to comply with the last paragraph otherwise we could not get tenders from members of the Association.\'94 There is no evidence as to what would have been the attitude of those members who had already stated their interest. As the learned judge observed, the successful tenderer in the end was non\endash member.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 It was Mr Kapadia's submission that to ignore the Fiji Master Builders Association\rquote s requirement for a new bill of quantities would be to deprive the plaintiff of tenders by some very experienced contractors. The learned judge , he said, expected the architects to look into a crystal ball and display perfect knowledge. All that was required of them was that they act as reasonable businessmen in the building trade. They could have rendered themselves open to criticism if they ha d not been at pains to get the best possible tenders.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 It was of course known to the architect that considerable delay would be necessitated if they altered the course they had already embarked upon, particularly as it entailed, in their view, employing ex perts from New Zealand to accomplish the task. When the architect wrote on the 23rd July 1973; to those who had responded to the advertisements, he advised them of the Association\rquote s notification, said compliance \'93would involve sometime\'94 , and requested them ; to hold onto the plans and specifications. Actually the new bill of quantities was not received until about the 18th September 1973, after which the tenders were called for. The closing date of 15th October 1973, was finally extended to the end of that month, and the contract signed on the 6th November.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Even allowing for the possibility that the original closing date, the 31st July, would similarly have had to be extended briefly the new procedure involved a delay of 2 1/2-3 months. None of the argument s advanced have satisfied me that the learned judge was wrong when he placed high importance on this aspect of the matter and considered the delay occasioned was unjustified. He did not overlook that the original bill of quantities might not have been ent i rely satisfactory. He had heard a number of witnesses connected with the trade but expert evidence on this difficult question was not abundant, and it remained perhaps more a matter of knowledge of local and economic conditions at the time and of the peop l e concerned. One impressive factor to me is that the plaintiff had so nearly reached the point were the results of the call for tenders could have been tested. The tenders were to close on the 31st July and the prospective tenderers, already registered, w e re asked to hold their hands on the 23rd. The names of at least six interested contractors, some in the Association, were in hand. To accept inevitable and substantial delay, in lieu of pressing on with the matter in hand does seem to justify the learned judge\rquote s comment that the plaintiff acted as if it had}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 carte blanche}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 and time was of little moment. On the contrary, it was common ground that costs were rising rapidly.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I am not prepared therefore to hold that the learned judge erred in his view that the plaintiff failed to mitigate to the extent that it should have. In this I base myself almost exclusively on the matter just discussed. It could be suggested that the plaintiff had been somewhat dilatory during May after terminating the contract. There is some evidence that it was still hoped that the trouble could be patched up at that stage. When the architect wrote on the 10}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973, to the defendant enclosing copies of the contract documents he said he was still hoping that the defendant would return without contract readjustment, and he understood approaches were being made through mutual friends. The expenditure of a certain amount of time in such endeavours could be justifiable though, as matters fell out, it would have been better spent on an atte mpt at full re\endash negotiation.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In my view therefore, the judgment under appeal, insofar as it relates to this particular head of damages, ought to be up\endash held in principle, but the date by which a new contract ought to have been let, instead of the 30}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 June, as the learned judge held, should be taken as approximately one week after the 31}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 st}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 July, when the tenders first called for should have been in hand. It will be necessary to re\endash appraise the question of damages on this basis.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In my opinion the basis figures used by the learned judge in his approach to the damages question have not been successfully challenged. As has been indicated he estimated the probable cost of completing the work in April 1973, as $275,450 being the origi nal contract price plus an estimate of the pre\endash stressing costs at $35,000. The evidence of negotiations between Mr Reddy and Mr Kasabia justified this. The learned judge then accepted evidence by Mr Raghwan of Raghwan Construction Co. Ltd. that he offered t o complete the work in May for from $260,000 to $265,000.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The credibility of Mr Raghwan was made the subject of a strong attack by Mr Kapadia. In October Raghwan Construction Co. Ltd. became a tenderer at $358,000 which, it was said, showed that the alle ged offer in May was not genuine. All I need say about this is that the learned judge heard considerable evidence on the matter and was fully entitled to believe Mr Raghwan. However, while the learned judge accepted the evidence of the offer of $265,000 i n May, he did not say that it was one which the plaintiff should have accepted to mitigate the loss. It was informal and not in writing. The learned judge merely gave it a place in his calculations relating to the theoretical case of a contract to complete the work at the end of June.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 What the learned judge did was subtract the sum of $275,000, being the estimated cost at the end of April, from $341,092, being the Group's successful tender price at the end of October. The difference of $65,642 represented the costs rise over the six months period, and while it was noted that this worked out at $10,940.33 per month as an average, the learned judge considered that matters were more stable in the first half of the year and rose more rapidly thereafter. It is p ossible that in this aspect of the matter the learned judge took into consideration the Raghwan price of $265,000 in May. In any event he arrived at a figure of $280,000 at which a contract for completion could reasonably be expected to be obtainable at t he end of June.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 As I have found, basing myself on the expectancy of tenders at the end of July 1973, pursuant to the plaintiff\rquote s original advertisements, the selection of the end of June by the learned trial judge was at least one month too early. Followi ng up his approach with this in mind it is inevitable that due allowance must be made for the expedited rise in costs in the second part of the year to which he alluded. Of the total rise in costs over six months from the 1}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 st}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May to the 31}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 st}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 October (namel y $65,642) his estimate of a contract of $280,000 at the end of June absorbed only $4,550- $280,000 less $275,450. Therefore, the remainder of the $65,642 must be spread over the four month period August\endash October. This works out at roughly $16,000 per month. As at the end of July, therefore the estimated cost of completion would be $280,000 plus $16,000 (a total of $296,000) with a corresponding increase of damages to $55,550:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Probable competitive price of completion at end}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 July 1973\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85$296,000.00}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Less original contract price\'85\'85\'85\'85\'85\'85\'85\'85\'85..}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 $240,450.00}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li5529\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin5529\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 $55,550.00}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I pass now to the other heads under which damages were claimed. The learned judge refused a claim for the quantity survey ors fee of $5,286.92. As my judgment has proceeded on the ground that this arose from an unjustifiable delay, I agree that this claim must be disallowed.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 As to the additional architects and engineers Fees these are on a percentage basis and the learned j udge allowed 7 per cent of the excess of the theoretical contract price as at the end of June ($280,000) over the original contract price ($240,450). This came to $2,768.50. On the same basis 7 per cent of the additional theoretical contract price I have allowed, comes to $1,120.00 which brings the total damages under this head of $3,888.50.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The learned judge denied a claim for additional interest on a loan the plaintiff had received from the Fiji National Provident Fund. It was claimed that he interest o n this loan was agreed to be varied according to the Government rate of interest, and that as from the 3}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 rd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973, the rate of interest was accordingly raised from 9}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 1}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 /4 per cent to 9}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 3}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 /4 per cent. Mr Kapadia relied upon the case of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Aruna Mills Ltd. v. Dhanrajmal Gobindram}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6431206 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%5b1968%5d%201%20All%20ER%20113" \\o "View LawCiteRecord"}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13728341 {\*\datafield 10d0c9ea79f9bace118c8200aa004ba90b0200000003000000e0c9ea79f9bace118c8200aa004ba90bb200000068007400740070003a002f002f007700770077002e007000610063006c00690069002e006f00720067002e00760075002f006300670069002d00620069006e002f004c006100770043006900740065003f00 6300690074003d002500350062003100390036003800250035006400250032003000310025003200300041006c006c00250032003000450052002500320030003100310033000000795881f43b1d7f48af2c825dc485276300000000a5ab0000}}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \cs16\ul\cf2\lang2057\langfe1033\langnp2057\insrsid4392595 [1968] 1 All E.R. 113}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid2755062\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 , seeking to draw an analogy between the exchange rate for rupees and the present interest rate. The c ase has no application, as it was one in which there was a provision in the contract that the buyers would bear any difference in the rates of exchange. In the present case the Provident Fund\rquote s letter of the 3}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 rd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973, indicates that the loan was negoti ated in September 1971, a year and a half before the contract, and there is no evidence that he defendant knew anything about it or that it was or should have been in the contemplation of the parties as a possible source of damage. This item in my opinion was rightly refused.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Finally there is a claim for the sum of $89,474 for loss of rental income as a result of forty-five weeks delay in completion of the work. The learned judge allowed nothing under this head, holding that the plaintiff had not discharg ed the onus of satisfying the court that it had suffered the lost of the amount claimed by reason of the breach of contract. The evidence, he said, was sketchy and unsatisfactory and he considered that the claim was based upon the assumption that the work would be completed within the thirty weeks time limit and secondly upon the assumption that the entire space would be taken up immediately.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In the circumstances of the case the loss of rental through delay in completion was in my opinion clearly a matter which could appropriately be included in a claim for damages. The parties were well known to each other and the defendant could not have fai l ed to know the use to which the plaintiff proposed to put the premises. It may not have been known how much of the space the plaintiff intended to use for his own storage purposes and how much he intended to use for his own storage purposes and how much h e intended to let to others, but the defendant knew he was building a bulk store.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I agree with the learned judge that in many respects the evidence was sketchy and unsatisfactory. In some cases where that position arise, a court may be justified in allowi ng no damages, on the basis that lack of proof would involve making a \'93shot in the dark\'94 . In others where some damages are plainly due, a court may do its best with the material before it, allowing wide margins in favour of the party in default, to ensure that he does not suffer by reason of the lack of evidence. That is, I consider, the position here. The plaintiff would undoubtedly have received some rents after completion, and, while the claim is an exaggerated one, it is necessary to look closely at th e evidence and make such award as seems appropriate.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Firstly the time factor. The claim for 45 weeks was based on a calculation by the architect Mr. Biggs. He arrived at it by assuming that the defendant was entitled to an extension of time by reason of t he delay in obtaining the building permit, until the 3}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 rd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 May 1973: he was entitled to thirty working weeks from that date. The date so arrived at was the 4}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 December 1973. The time allowed for completion under the Group contract, with approved extensions, was the 11}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 October 1974. Damages therefore ran from the 4}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 December 1973 to 11}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 October 1974\endash forty\endash five calendar weeks. In my opinion, this was a reasonable approach so far as time is concerned, but it is subject to the finding I have made earlier in this judgment, that a new contract could reasonably have been reached in August rather than November. This factor, say an interval of twelve weeks, reduces the time factor to be included in the calculation, from forty\endash five to thirty-three weeks.}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The remainder of Mr. Biggs\rquote calculation lacks force. He assumed a rental of $3 per square foot per annum, and full occupancy over the period. The evidence actually given supports neither of these propositions and I do not accept this part of Mr. Biggs\rquote report.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The evidence shows only one period of full occupancy, over a six month period. That was when the premises were let to the Ports Authority from the 5}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 August 1975. Mr. J. S. Singh, Assistant Director of Lands, gave evidence that the rental was $5,775.70 per month from the 5}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 August 1975, to the 9}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 September 1975, when it became $7,588.33. It is important to note from Mr. Singh \rquote s evidence that the increase in rental was made upon completion of certain works required by the Ports Authority. This had referenc e to amenities such as fencing, floodlighting and gravel surfacing for a car parking area, all of which were included in the agreement. Mr. Singh said that a substantial amount of work had to be done. Clearly these additional matters were no concern of th e defendant, and accordingly it is right to take the lower figure, only as some sort of guide to the rental value of the place. That figure is $5,775 per month.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 There is no other evidence of any value concerning rentals received. This witness, incidentall y, gave evidence that he did not consider there was much variation of rental for bulk store space between 1973 and 1975.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Beyond this letting to the Ports Authority the evidence gives the impression that tenancies have been temporary and casual. Mr. Kasab ia names various organisations who had been interested; he said Martin Fabrics took 7,500 square feet for three months, Seatrans Ltd are now there on \'93fluctuating space\'94, and D. N. Patel was a tenant. He said space was rented on a weekly basis and \'93I am still looking for long term tenants\'94. This is where the evidence is unsatisfactory, but is even more so on the question of the plaintiff\rquote s own utilisation of the premises. Mr. Kasabia said that it had been intended that the plaintiff would use 14,000 square feet out of 35,000 square feet of the premises. The Ports Authority then took the whole area and, when it left, the plaintiff moved in and occupied 21,000 square feet as a bonded warehouse.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The difficulty is that the loss of occupancy by the plaintiff ha s not been made a head of claim in damages. It would call for expert opinion as to the value of the occupancy, taking into consideration staff, overheads and the like. The same applies, in perhaps less measure to rentals \endash there is still administration, rates and other expenses. The case for the plaintiff suffers in two ways \endash lack of pleading as to personal occupancy and lack of expert evidence in both cases.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Making the best that one can of this unsatisfactory situation I would act on a basis of $5,000 p er month to represent a net rental value. I would take 33 weeks as the multiplier. To cover the elements of occupancy by the plaintiff itself (for which having made no claim, it is not entitled to anything) and the shortfall of full occupancy by tenants I would proceed on a basis of 50 per cent of full occupancy. In the result, and without confining myself to niceties of arithmetic, I would award the plaintiff $18,500 damages under this head.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Mr. Kapadia claimed general damages, but the learned judge did not directly advert to this head. In my opinion it is not a case in which general damages should be awarded in addition to the special damages.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In the final result I would dismiss the cross appeal with costs. I would allow the appeal and direct that judg ment be entered in the Supreme Court in favour of the company for the sum of $77,938.50 and costs, in lieu of $42,318.50 and costs. The amount of $77,938.50 comprises damages allowed under three heads viz.:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1) \~\~\~\~\~\~ cost of completing the work, $55,550}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (2) \~\~\~\~\~\~ architects and engineers fees, $3,888.50}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (3) \~\~\~\~\~\~ loss of rental, $18,500.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The plaintiff company will also be entitled to the costs of the appeal.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 As all members of the court are of the same opinion there will be orders in the terms I have proposed above.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 HENRY J. A.:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In 1973 appellant was the registered owner of a piece of land in Amy Street, Suva on which it proposed to erect a bulk store. Resp ondent carried on business as a building contractor. On March 6, 1973 appellant and respondent entered into a contract under which respondent agreed to erect the bulk store for the sum of $240,450. The contract provided for the site to be made available i m mediately and for work to commence when the site was available and to be carried on regularly and diligently. Time for completion was originally 26 working weeks but this was increased to 30 working weeks. When the contract was signed the architect for ap pellant had already taken steps to get the necessary building permit from the Suva City Council. It was expected that there would be no delay. In the event the permit was not granted until May 3.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Respondent commenced preliminary and excavation work, but ceased on March 24, and, by a letter dated March 26, said that this was for reasons known to the architect. Respondent claimed that an error had occurred in assessing the cost of pre\endash stressing materials and an increase in price was sought. By a letter dated April 24 respondent stated that it was prepared to proceed with the works as quoted provided appellant met fifty per cent of the cost of the pre\endash stressing material. The architect wrote to respondent the same day claiming that respondent was in default and requiring respondent to recommence work within 5 days. Respondent replied by letter on April 26, in which (}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 inter alia}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 ) it was claimed that, on the contrary, appellant was in default in obtaining t he building permit and therefore respondent was entitled to determine the contract. To this claim the architect pointed out that the obtaining of a permit was a ground for extension of time and not for determining the contract. Reference was made to terms in the contract. By a letter written on May 2 respondent said:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 Since the project was negotiated some two months ago, we have become more heavily committed with projects which are approved and which works have started and therefore we exercise our prerogative not to carry out the works.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li117\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin117\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 We are forced to withdraw from the building of these works as we have not sighted approved plans or the Building Permit.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Appellant replied through its solicitor on May 5 asserting that respondent was in breach and sev en days were given to remedy the default. The letter further stated that if respondent failed to do so it would be held liable for all extra costs, loss and damage resulting.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In November 1973 a fresh contract was signed by appellant with another co ntractor for a price of $341,092, but this was subject to certain fluctuations in costs. The final price for completion was $371,230.47. Appellant claimed the difference, namely, $130,780.47; also quantity surveyor\rquote s fee, \'a3 5,286.92; additional architect\rquote s fees $8,623.37; additional interest paid and loss of rental income $89,474 - a total of $226,575.37. Judgment was given for $39,550 for extra costs of completion and for $2,768.50 for additional architect\rquote s fees. The other items were disallowed.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Appellan t has appealed against the quantum of damages and contends that all claims should have been allowed in full. Respondent does not question quantum but has filed a cross - appeal on the ground that respondent was discharged from performance of the said buil ding contract. Although the grounds of the cross - appeal were set out at some length they are interwoven and may, as counsel for respondent said, be summarised under three headings, namely:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-709\li1418\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1418\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1) \~\~\~\~\~\~ That appellant, in failing to obtain a building permit within a reasonable time, was in breach of an implied fundamental term of the contract justifying respondent in treating the contract at an end;}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (2) \~\~\~\~\~\~ That frustration supervened by virtue of the fact that no building permit was obtained within a reasonable time;}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (3) \~\~\~\~\~\~ That performance of the contract was illegal by reason of the absence of a valid building permit and respondent was entitled to treat the contract illegal and void.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 All three grounds have, as a basis, question relating to the obtaining of a building permit.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 It is common ground that, at all times, both parties were content to allow the architect to continue his effort to obtain the necessary building permit. No difficulty of any moment was expected. Such expectation was then reasonable, but, as it turned out, the permit was not granted until May 3. This was a delay of 8 weeks in respect of a contract which required completion in 30 weeks. The regional development plan had been approved as early as the previous November and t h e architects had already, at the time of contract, taken steps to have a permit issued. Such a delay is unusual. By a letter dated April 26, previously referred to, respondent first raised specifically in writing the absence of a permit as a matter of def ault on the part of appellant.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The first ground of the cross-appeal is based on a submission that the obligation to obtain the building permit lay on appellant and that appellant was in breach of that obligation. The contract documents contain provisions for obtaining a permit so the documents must first be construed to see if there is express provision requiring either appellant or respondent to obtain, the permit. Considerable reference was made by counsel for respondent in his argument to the prior his t ory of negotiations, to the fact that the architect had already on behalf of the appellant applied for a permit, and to the fact that the architect continued with his efforts in that regard after the contract was signed. Counsel also referred to other mat ters given in evidence, including the usual practice of the architect obtaining the permit on behalf of the building owner and discussions between the parties.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Lord Morris said in}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Bank of Australia v. Palmer}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1897] A.C. 540 at p. 545:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93Panel testimony cannot be received to contradict, vary, add to or subtract from the terms of written contract or the terms in which the parties have deliberately agreed to record any part of their contract.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Prenn v. Simmonds}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1971] 3 All E.R. 237 the following part of the headnote is opposite. It reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Per Curiam}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 . Although in construing a written agreement the court is entitled to take account of the surrounding circumstances with reference to which the words of the agreement were used and the object, appearing from those circumstances, which the person using them had in view, the court ought not to look at the prior negotiations of the parties as an aid to the construction of the written contract resulting from those negotiations. Evidence, should be restricted to evidence of the factual background known to the parties at or before the date of the contract, including evidence of the \lquote genesis\rquote and, objectively, the \lquote aim\rquote of the transaction.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li288\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin288\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In James}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Miller v. Whitworth Estates}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6431206 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%5b1970%5d%201%20All%20ER%20976" \\o "View LawCiteRecord"}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13728341 {\*\datafield 10d0c9ea79f9bace118c8200aa004ba90b0200000003000000e0c9ea79f9bace118c8200aa004ba90bb200000068007400740070003a002f002f007700770077002e007000610063006c00690069002e006f00720067002e00760075002f006300670069002d00620069006e002f004c006100770043006900740065003f00 6300690074003d002500350062003100390037003000250035006400250032003000310025003200300041006c006c00250032003000450052002500320030003900370036000000795881f43b1d7f48af2c825dc485276300000000a5ab0000}}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \cs16\ul\cf2\lang2057\langfe1033\langnp2057\insrsid4392595 [1970] 1 All E.R. 976}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid2755062\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 the following statements appear:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1) at p. 798 per Lord Reid:}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li1440\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 ..... I must say that it now well settled that it is not legitimate to use as an aid in the construction of the contract anything which the parties said or did after it was made. Otherwise one might have the result that the contract meant one thing the day it was signed, but by reason of subsequent events meant something different a month or a year later.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li864\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin864\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (2) at p. 80 per Lord Hodson:}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li1440\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 I need not enumerate other considerations, for the question is, to my mind, determined by the use of the English form, the selection of which shows the intention of the p arties to be bound by English law. I should add that I cannot assent to the view which seems to have found favour in the eyes of Lord Denning MR and Widgery L. J., that as a matter of construction the contract can be construed not only in its surrounding circumstances but also by reference to the subsequent conduct of the parties.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li144\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin144\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (3) at p 815 per Viscount Dilhorne:} {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li1440\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 I do not consider that one can properly have regard to the parties\rquote condu ct after the contract has been entered into when considering whether an inference can be drawn as to their intention when they entered into the contract although subsequent conduct by one party may give rise to an estoppel.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (4)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 at p. 808 per Lord Wilberforce:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li144\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin144\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li1440\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 Unless it were found an estoppel or a subsequent agreement, I do not think that subsequent conduct can be relevant to this question.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Wickman Ltd. v. L. Schuler}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \cs15\i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 A.C. [1972] 2 All E.R. 1173, 1181 Lord Denning MR said:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93I know that in}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 James Miller & Partners Ltd. v. Whitworth Street Estates (Manchester) Ltd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 . the House of Lords affirmed the rule in chancery that a contract cannot by construed by reference to the subsequent conduct of the parties. But that is only the rule when the contract is capable of only one proper meaning. When it is capable of two meanings, then it is, and always has been permissible at common law to look at the way in which the parties themselves acted on it: for they are themselves the very best guides to the way in wh ich it was used. Many of the cases to this effect are collected in}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Watchman v. Attorney\endash General of East Africa Protectorate}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1919] A.C. 533 and Halsbury\rquote s Laws of England Vol. 11 3}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 rd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Edition pp. 410, 411 paras. 666, 667.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 From these authorities it is my respectful view that the express words of the contract must first be construed in the surrounding circumstances but not on the basis of what the parties may have said was their intention at the time. Nor can any prior or su b sequent conduct determine the meaning of their written contract was there is more than one way in which the contract can be construed, that is, unless there is in ambiguity in the way in which the terms are recorded in that event subsequent conduct may be looked at. The paramount task of a court is to consider the express words used, considering them, of course, in the context of the whole of the provisions in the writing and the relevant background. It is beside the point that the parties may consider the i r obligations to be different from the express terms of the recording instrument. That can only be a matter of rectification or perhaps estoppel. If the written words are capable of being given a meaning then that is the intention and obligation in accord ance with the writing. I turn, therefore, to consider the various documents which comprise the written contract to see whether or not they place upon appellant or respondent the obligation to obtain the building permit.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Appellant and respondent entered in to a contract in a printed form used by the New Zealand Institute of Architects. For the purpose of the judgment the following documents which comprise the contract are of importance, namely:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1) the contract agreement itself which contained a number of printed pages comprising which were called \'93General Conditions of Contract\'94.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (2) An appendix called Appendix I which provided for a number of particular items including time for completion,}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (3) A document called \'93General Instructions\'94 upon which the tender was made, and}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (4) Drawings and specifications.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The General Instructions clearly provided that appellant (the building owner) shall obtain the building permit and pay the fee. But by the General Condition Contract (hereinafter called \'93General Conditions\'94) it was provided as follows:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-709\li1418\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin1418\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'9311.1 \~\~ The Architect shall provide all Drawings, Specifications and Calculations required for the approval of Authorities having jurisdiction over the Works. The Contractor shall conform with the by - laws regulations of such Authorities.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 11.2 \~\~\~ The Contract or shall give notices and obtain the necessary permits and shall pay charges of every kind to such Authorities in respect of the Works. The Contractor shall also obtain the approval, of such Authorities, of the completed Works where required by such Autho rities.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Discrepancies between the various documents of contract were provided for by clause 8.1 which reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 Any Special Condition of Contract which differs from these General Conditions of Contract or Appendices shall take precedence over these Gener al Conditions or Appendices only if stated in the Specifications as a Special Condition of Contract and so noted in Appendix I.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 If such discrepancy should arise then provision to meet it was made in clause 9.1 which reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93If any apparent discrepancy is disclosed in or between the Contract Documents the Architect or the Contractor shall notify the other party and the Architects shall issue a written direction to determine the discrepancy. Such direction may justify a Variation according to circumstan ces.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The contract also provided machinery for dealing with the issue of permits subject to conditions affecting the work. Clause 11.3 is the provision. It reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 If permits are issued subject to conditions affecting the Works, such conditions shall b e referred by the Contractor to the Architect to enable the Architect to confer with the Authorities regarding such conditions. No such condition shall become a Variation unless confirmed in writing by the Architect.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The next provision which ought to be noticed is clause 31: 1(a) and (j). This clause reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 The Time for Completion shall be extended beyond that stated in Appendix I or beyond any extended time fixed hereunder if the completion of the works is delayed by reason of:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-288\li864\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin864\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-709\li2127\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin2127\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (a)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~\~\~\~\~\~ Non - availability of permits unless this is caused wholly or in part by any act or default of the Contractor;}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \fi-709\li2127\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin2127\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \fi-709\li2127\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin2127\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (j)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~\~\~\~\~\~ Any other significant cause beyond the control of the Contractor.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In my judgment the general conditions contain a comprehensive set of terms designed to provide for the building contractor to obtain all necessary permits of which a building permit is the most important because upon it depends the validity of the execution of the work. Such a permit may well stipulate \'93 conditions affecting the works\'94 , possibly of an onerous nature, or, for additional or different work, which must be observed by the contractor. In that event provision has been made which will govern the respective rights of the parties. This permit was central to whol e performance of the work, so, in my opinion the words \'93necessary permits\'94 in clause 11.2 include a building permit. Indeed, no other permit of any moment appears to have been in contemplation. One witness said that both the owner and the builder had an ob ligation under the By - laws but this was not further pursued. The document general instructions was not noted in Appendix I as required by clause 8:1 so the general instructions which provided for appellant to obtain the building permit must give way to the express provision in clause 11:2 of the general conditions. Since there was thus no obligation on appellant to obtain a building permit appellant was not in breach of any term of the contract. The obligation to obtain the permit rested on respondent.} {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Even if on the contrary it be that the obligation was on appellant to obtain the building permit I am in complete agreement with the judgment of Gould V. P., which sets out in clear and greater detail the events leading up to the signing of the contract. For the reasons the learned V. P. has given I would also hold that there has not been a breach which entitled respondent to treat itself as being discharged from further performance.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Counsel for respondent argued in support of the first ground that, by th e conduct and representations of the architect in relation to the assumption of the duty of obtaining a permit, some form of estoppel arose. This will not help respondent. Its case is that appellant was under the obligation to obtain a permit. I have held that the contract places the obligation on respondent. Unless the contract was varied, and no variation has been pleaded, that obligation on respondent remains. It may well be that, if appellant alleged a breach by respondent, estoppel would be a shield f or respondent but the course of conduct cannot, unless it amounts to a variation, create a positive obligation contrary to the express terms of the contract. The first ground of the cross\endash appeal fails.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The second ground raised a claim that the delay in the issue of a building permit entitled respondent to treat the contract as at an end by reason of the doctrine known as frustration of contract. The relevant date is May 2 - the day before the issue of t h e permit - because on that day respondent notified the architect that it was exercising its prerogative not to carry out the work. Both parties reasonably believe that a permit would be issued shortly after the signing of the contract. It was signed in th e knowledge that no permit had been issued. The architect had undertaken to continue his efforts to get the permit issued. Both parties acquiesced in this, apparently in the mistaken view that appellant was responsible for getting the permit. Since, as I h a ve found, the obligation was on respondent, this action on the part of the architect on behalf of the appellant can operate, if at all, as an estoppel against any claim that respondent was in breach of the contract in this respect. This defence must be de t ermined in the light of the events as they happened and without reference to the strict legal position concerning the obtaining of the permit. The question, then, is whether the lapse of time between the signing of the contract and May 2, the period of de lay was such that, in the circumstances, it operated as a frustrating event entitling respondent to treat the contract as having been discharged.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 It is sufficient in the first place to cite a well-known passage from the speech of Lord Radcliffe in}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Davis Contractors Ltd. v.}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \cs15\i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Fareham V.D.C}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 . [1956] A.C. 696 at pp. 728 - 9 where is Lordship said:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 So perhaps it would be simpler to say at the outset that frustration occurs whenever the law recognises that without default of either party a contractual obligatio n has become incapable of being performed because the circumstances in which performance is called for would render it a thing radically different from that which was undertaken by the contract.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Non haec in foedera veni}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 . It was not this that I promised to do.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li144\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin144\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The contract contained express provisions to deal with delay in obtaining necessary permits. It has not been shown, as it must, that taking into account these provisions, the contract became radically different. The evidence clearly shows that as la te as April 24 respondent was prepared to proceed with the works as quoted provided that appellant met fifty per cent of the cost of pre - stressing maternal, that is, provided the price was increased for an item which had been underestimated when the ten der was made. Mr. Reddy, who represented respondent; - said categorically \'93we intended to resume work if (appellant) re-imbursed us on costs of pres-stressing materials\'94 . That was only 8 days before notice of termination was given. There is nothing in the c ase to show any radical change in those few days. It would appear from the evidence that there was good ground for the architect to believe that the permit would be issued on May 1: He wrote a letter to that effect but delayed posting it until the 4}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 because actual issue did not eventuate until May 3. An inquiry on May 1 ought to have revealed the position to respondent.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Counsel for respondent relied particularly on the following passage from}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Halsbury\rquote s}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Laws of England 4}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Edition Vo. 9 para. 453. It reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 Frustration very commonly arises through delay, attributable to the fault of neither party, of such a character that the fulfilment of the Contract in the only way or ways contemplated and practicable is inordinately postponed that the delayed fulfi lment will involve something commercially or fundamentally different from that contemplated in the Contract.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Six grounds were put forward to support respondent\rquote s contention. They were:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 (a) Certain man power requirements had been organised to perform the contract.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (b) It was unreasonable to require the contractor to have men and machinery standing idle.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (c) A fixed price contract depends greatly upon organisation and timing and any delay can be disastrous in the performance of a contract.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (d) That adequate compensation was not available under the contract conditions.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (e) That adequate recompense was not available pursuant to the time extensions under cl. 31.1 of the conditions of contract.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (f) That the owner could not give nay guarantee or specific date (at least one which it was able to comply with) upon which it could guarantee that a permit would be issued and that such uncertainty was a major factor that the contractor was e ntitled to take into account in terminating the contract.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 As to (a) and (b) there was no specific evidence to show what effect the delay did have on this contract at the time. As to (c) to state that something \'93can be\'94 is irrelevant. The actual result m ust be proved. As to (d) and (e) there is no specific evidence that this is so. Even if it were, it was not shown to be something radically beyond that which the parties contemplated could be covered by the provisions of the contract. As to (f) this is an s wered by the fact (as indeed are the other grounds) that respondent was prepared to proceed on March 24 subject only to extra payment for an item which the learned judge said amounted to $35,000. A simple inquiry on May 1 would have disclosed the fact tha t the permit was about to be issued. It should be noticed that respondent did proceed with certain work in preparation for the erection of the structure also that there was a strike during the period so it can by no means be said that, in fact, there was a delay of 8 weeks in carrying out the work. In my view the contract had not become commercially, fundamentally or radically different from that contemplated when it was entered into. I respectfully agree with the learned judge when he said the lack of a pe rmit only assumed importance after appellant refused to pay an extra price. This ground of appeal fails.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The third ground upon which respondent relies is illegality. .The contract itself when entered into was not illegal. It provided for the obtaining of all necessary permits by respondent although the parties acted throughout on the basis that it was the duty of the architects as agent for the appellant to get the permit. There is no evidence that the time factor would have been any different if responde n t had undertaken the actual performance of the task. The fact that respondent elected to commence the work before a permit was issued did not make contract illegal. It may make the performance on the part of respondent an illegal act but it does not make t he contract itself illegal when the intention at the time of execution was to perform it legally. There was considerable argument whether or not respondent could do preliminary work without a permit. Also whether the failure of the Suva City Council to gr a nt the permit within one month of application entitled the parties to treat the permit as having been duly granted. I do not find it necessary to decide these points. If there be illegality in what respondent did then it was the act of respondent carrying out unlawfully a contract which was intended to be carried out lawfully and which was capable of lawful performance. Respondents cannot set up his own election to perform a lawful contract in an illegal manner (if, indeed, he did so) as a ground for decla ring the contract illegal.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Counsel for respondent relied on the cases of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Anderson v. Daniel}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1924) 1 KB 138 and}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Strongman (1945)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Ltd. v. Sincock}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1955) 2 QB 525. Neither case applies to the facts of the present case. The obligation to obtain a permit was, in my view, expressly undertaken by respondent. Although the architect in fact undertook to continue his efforts to get the permit, this did not vary the contract and operated no higher than a ground upon which respondent would rely as a defence if a bre ach were alleged against it. It was the respondent\rquote s own election to proceed knowing that a permit had not issued which raised the question of illegality. The contract never required the respondent to commence work without a permit. Clause 30.2 obliged resp ondent to do everything necessary to prevent delay. Respondent was content to leave its obligation to the architect (albeit under a misconception of the legal position) and also to commence the work before the permit issued. If, to do that was illegal, th en, as the learned authors of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Cheshire & Fifoots\rquote s Law of Contract}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 9}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Edition p. 361 tersely say:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 Escape from a lawful obligation can scarcely be gained by a self-induced act of illegality.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I reject any claim that respondent can set up a plea of illegality.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I turn now to consider the appeal against quantum of damages. The rule in}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Hadley v. Baxendale}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1854) 9 Exch. 341 has been the subject matter of many cases. A recent instance in the House of Lords is}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Kaufos v. C. Czarnlkov Ltd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1969) 1 C A.C. 350. The numerous cases cited in argument are no more than instances which show how judges have applied those principles to particular facts:}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 vide S. S. Swansea: Vaile v. Rice}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 (1912) A.C. 218, 239. In a case where a contract is abandoned and new contract for completion is entered into, a recoverable loss, prima facie, is the difference between the original contract price and the cost of - completing the work. Appellant, as the b uilding owner, was bound to take all reasonable steps to get a new contract at a reasonable cost. Counsel for appellant has argued that the steps taken by appellant were reasonable in all the circumstances and that the actual cost of completion is recover a ble. Counsel for respondent on the other hand argued that, by taking reasonable steps, a contract ought to have been obtained at a much earlier date and for a lesser figure. Counsel for respondent stated the question in the present case to be: What was th e reasonable cost of completing the work when appellant first became aware that respondent made it clear that it no longer intended to be bound by the contract? That, I consider, succinctly states the issue. Whether the question is looked at on the basis o f what damage is recoverable under the rule in}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Hadley v. Baxendale}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 or in what way ought appellant to have acted to minimise the actual cost of completion, the issue of fact is the same. No question of onus of proof arises here because there was evidence fro m both sides on the topic and the only task is the making of a definitive finding on such evidence:}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Robins v. National Trust}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 [1927] A.C. 515, 520.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 A period of 8 months elapsed between the notice in early May and the signing of a new contract. The new con tract was not for a fixed price, as was the original contract, but included a clause which enabled fluctuating costs of certain items to be taken into account in determining the final price. This resulted in an increase of $30,138.47 thus bringing the fig u re of $341,092 to a figure of $371,138.47. The learned judge considered that the sum of $30,138.47 was too remote. With respect he appears to have overlooked that it was part of the price for the second contract so it must be considered - not as a separat e item - but as part of the cost of carrying out the original contract. The real issue, was, in this respect, whether it was reasonable to accept a fluctuating cost contract rather than one at a fixed price. The is a matter which must be considered on the p rinciples stated. The learned judge held that a contract ought reasonably to have been let not later than June 30 and that a reasonable price would then be $280,000. This was an increase of $39,550 on the price of the original contract and judgment was gi ven on this head for $39,550.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The original contract was let without calling tenders. The new contract was let only after public tenders had been cal led. This in the event caused a long delay. A complicating, factor which caused considerable delay was a notification by the Master Builders Association whose members required, for the purpose of tendering, that a bill of quantities be certified by a regi s tered quantity surveyor and also that provision be made for fluctuating costs. These were requirements which appear to have been of recent origin and were not incidents of the original contract which one was negotiated for a fixed price without the callin g of tenders. It seems that the architect had no prior knowledge of this development until the letter of July 13. The steps which were taken by the architect on behalf of appellant at this time may be shortly stated. During May, attempts were made to persu a de respondent to resume work. On June 7 and 13 advertisements asking interested builders to register for tendering were inserted in the Fiji Times. The closing date for tenders was July 31 but the letter from the Master Builders Association was received b e fore the closing date, namely, on July 13. The date of July 31 was abandoned. In August 1972, an arrangement was made to have the certification done in New Zealand. In the result the certified bill of quantities was not available in time to fix a further closing date earlier than October 15. By request from several builders, who asked for further time to tender, the closing date was extended to October 22. This date was adhered to and the new contract was signed on November 16.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The learned judge made the following findings:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 In my view the method used by the plaintiff to get another building contractor for the job shows scant regard for the time element. I can find little to justify the delay arising from the concession to the Fiji Master Builders\rquote Assoc iation on the matter of a bill of quantities It may, be noted in this connection that not all building contractors operating in Fiji at the time were members of the Association. Moreover, I cannot find any justification for the plaintiff to go outside Fij i to obtain a bill of quantities. Qualified building surveyors were in fact available locally\'94.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 These findings are clearly supported by the evidence and I can see no reason why they should be set aside. I would, with respect, use the word \'93insufficient\'94 and not \'93scant\'94. The learned judge further found as follows:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \fi288\li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93 It seems to me that in the interest of mitigating loss the plaintiff should have called for fresh tenders upon the same documents upon which the defendant had tendered, namely on the Plans and Specification and the bill of quantities (Ex. 16). These documents were available as early as February 1973. The plaintiff should have realised and appreciated that the time factor was extremely important because of its relevance to, the question of costs and particularly in 1973 when the building industry was experiencing a boom period when costs were rising at a more or less rapid rate. However, it appeared that the plaintiff took to its task of finding a substitute building contractor as though it had a carte blanche over the matter in which time was of little moment.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The learned judge went on to criticise appellant stating it acted as if it had carte blanche in the task of finding a new contract. I do not consider that this was justifiable comment.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 After finding that the delay caused by getting the bill of quantities certified was inexcusable the learned judge went on to say that he could fired no cogent reason why a new contractor should not have been engaged by the end of June. He then found that a reasonable price at that time was $280,000. In fixing this price he stated that respondent would have gone back in April 1973 if the extra cost of pre-stressing material - $35,000 - had been paid thus making a total price then of $275,450. Whether a new c ontract might have been negotiated then at that figure is not clear but it was a basis which respondent was prepared to act on. The condition on which respondent was prepared to continue the work would mean that : appellant would lose its right to insist u pon the original price. Counsel for respondent argued that this offer fixed the limit of damages suffered. It did not because it involved, if accepted, the discharge of the original contract and the emergence of a new contract. One party cannot, as a matt er of limiting damages, put the other to such an election. I reject the argument put forward on this basis. The only value it has is the weight the court may give to me offer as an indication of price at right time.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \fi288\li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Reliance was also placed on the evidence of Mr. Raghwan of Raghwan Construction Company Limited whose evidence the learned judge, accepted as a contractor who would have completed the work for about $265,000. This evidence is fully discussed by Gould V.P. and I find it unnecessary to re peat what he said in his judgment. I agree entirely with his findings on these two matters.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Further reference may now be made to the other evidence. The architect said that during the material period \'93we were in the midst of a building boom - no time to n egotiate contracts\'94. Further that the building industry was very busy in 1973 and that it was a time of rapidly escalating costs. Strangely he added that time was not of the essence. It was Appellant\rquote s solicitor\rquote s letter of May 5 had warned to respondent a t it would be held liable for all extra costs and all loss and damage. Loss of the use of the building through delay in completion must necessarily be a substantial item and building costs were escalating. In the result the delay involved a claim for well in excess of $200,000. The architect must have known any claim would be large unless time was made a prime factor in getting a new contract. Witness conceded that, in retrospect, it may have been possible to get a better price by negotiation but everybody was busy. It is trite, of course, that it is foresight and not hindsight, which is the test. Nevertheless this was all pertinent evidence which the learned judge considered. Price was not the only consideration - date of completion was also important. Mr. Cockburn, a registered architect called by respondent, and that for a builder to stop work as respondent did would be regarded by him as a crisis and that an architect should exert strenuous efforts to get the jog going again and preferably by the same co ntract (sic). He said that 6 \'bd months to get another contractor appeared to be a long time. Mr. Jameson who was general manager of Fletcher Organisation in Fiji said that he told Mr. Kasabia that, whilst his organisation would not give a firm price, it woul d undertake the work at cost plus a fixed fee of 10% or 15%. This was after respondent elected not to continue. There was a conflict of evidence between this witness and Mr. Kasabia, but no attempt was made to see what could be done, although it was a tim e of rapidly escalating costs. Mr. Kasabia does not appear to have referred the discussion with Mr. Jameson to the architect. According to Mr. Jameson, Mr. Kasabia said he would recover any extra cost for respondent. There he let the matter rest. Mr. Mount f ield a qualified quantity surveyor in practice in Fiji, said that in July 1973 he was approached by Mr. Power, a partner of the architect, about the certification of a bill of quantities, that he quoted the Australian scale of fees and that at the time he could have undertaken the work. The architect decided to send the bill of quantities to New Zealand and there was a period of delay which resulted in the certification not being available in Fiji until September 20 when steps were commenced to call tender s.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 In October building costs had escalated very considerably. Some responsible contractors were tendering on a basis that fluctuations in costs were to be taken into account in the final price. Others were prepared to give a fixed price. When tenders clos ed in October the following tenders were made with a fluctuating cost provision namely: $443,000, $420,276, $407,896, $358,000, $345,800 and $341,092. Fixed prices were as follows: $483,301, $449,564 and $402,872. These figures show the substantial increa se in prices which took place between March and October. The question whether appellant acted with reasonable diligence in obtaining a new contract becomes of vital importance in view of these increases.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 After careful consideration of the matter set out e arlier and of all relevant factors, I am of the view that the learned judge was right when he rejected the claim that appellant was entitled to base damages on the cost of a new contract made as late as November. It then became the duty of the court to ma ke a finding on what was a reasonable time for getting a new contract and what was then a reasonable price. In my judgment, however, insufficient weight was}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 \~}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 given in the Court below, to the fact that some of the month of May could properly be employed in an attempt to get respondent \'93back on the job\'94 . This would leave only a small part of May and all June to negotiate a new contract or to call for tenders if, as seems the case, there is a difference in the two methods. Time was important contrary to what the architect said. His own pre - occupation with other work, whilst a matter, for consideration, should not be a responsibility of respondent unless the architect\rquote s own personal attention was vital in the particular circumstances of this case. Taking all mat ters into consideration it is my view that the month of July should also have been included in fixing the time for obtaining a new contract. The original date of July 31 should have been adhered to. This will then require an assessment of a reasonable pri ce at that time. The learned judge said:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93We know in October 1973 Group \rquote s price for the job was $341,092.00 which was an increase over a period of six months (May to October) of $65,642 or at a rate increase per month of $10,940.33. However, I do not thin k the costs per month would have increased at an even or regular rate throughout the year as to justify the use of such figure as representing the factual increase firs costs per month. From the evidence it would appear more probable that the rate of incr ease in costs per month was less dramatic and relatively more stable during the first half of 1973 than during the later part of that year when the building boom rose to its peak.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 On the evidence of respondent, as found in the Court below, respondent fix ed a price of $275,450 for the work in April. This was $35,000 more than the contract price of $240,450. Therefore a fair estimate of appellant\rquote s loss at that time when it lost the benefit of the original contract, was $35,000. Since, as I have found, a new contract ought to have been let on prices fixed on tenders closing on the July 31}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 st}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 it is question of assessing a reasonable sum to provide for rising costs during that period. The actual cost of completion, which resulted from a new contract let in Nove mber, was $371,230. If the figure of $275,450 above referred to, is, deducted the rise in cost was $95,780 - i.e. $371,230 - $275,450. The question is what proportion of that increase is it reasonable to add to the figure of $275,450 to fix a reasonable p r ice as on July 31. The learned judge has allowed only $4,550, i.e. $280,000 - $275,450. Gould V.P., has analysed the figures based on findings and observations of the learned judge and has concluded that a further $16,000 over and above the figure of $4,5 50 allowed by Tuivaga J., ought to be allowed making a total of $20,550. To this, on the way in which I have approached the question, must be added $35,000 as earlier stated. Appellants\rquote loss is therefore as at July 31 if a contract were then let on the basis of tenders closing on that date; the sum of $55,550 being $35,000 plus $20,550 for the rise in prices.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I agree that damages on this head should be fixed at $55,550.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 As a result of finding that the relevant date is July 31, the claim for the quantity surveyor\rquote s fees must fail. The claim for architect\rquote s and engineer\rquote s fees will be increased as proposed by Gould V.P.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The learned judge disallowed the claim for additional interest. This claim was based on the fact that a loan of $325,000 had been arrang ed with the Fiji National Provident Fund. The interest rate rose from 9 \'bc to 9 \'be . The claim is for $15,397.19 which is the additional amount of interest payable as the result of the said increase in the rate. The period is from January 31 1976 to July 31 1 990 which appears to be for the whole term of the mortgage. On May 3, 1973 the Fiji National Provident Fund wrote appellant as follows:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \'93re: Proposed Loan for Bulk Store }{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 When you negotiated this loan in September 1971 you indicated to the Board that yo u would be in a position to up - lift the loan by the second half of this year and I am wondering if you have any firm date for up - lifting the funds so that I could arrange by cash flow. Would you please refer to our letter of the 21}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 st}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 September 1971 in which the rate of interest agreed was set at 8.5% or 2% above the Government borrowing rate at the time when the loan was made. I am now to inform you that the Government long - term borrowing rate is 7.25% p.a. therefore the rate of interest which will b e charged will be 9.25% p.a.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The letter of September 21, 1971 was not produced. It would appear from these facts that the loan was negotiated in 1971 and the rate was increased on May 3, 1973 and thus would have been effective even if the original contra ct had been performed. The only evidence on this topic was that of Mr. Kasabia and from that evidence I am unable to ascertain how the abandonment of the contract at the beginning of May 1973 caused the loss of interest which was claimed. I would disallow this item and confirm the finding of the learned judge.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The remaining head of damages which requires to be considered is a claim for loss of gross rentals. This is for a sum of $89,474 in respect of a period of 45 weeks from December 4, 1973 to October 1 1, 1974. The first date is calculated from the time when the permit was granted to which was added the period for completion, namely, 30 weeks. The second date, is calculated from a period of 28 weeks after work commenced under the new contract which requ i red completion within 28 working weeks from December 3, 1973. There was an extension which is difficult to calculate because time is fixed by reference to working weeks not successive calendar weeks. Apart from delay in getting the permit no allowance was made for extensions of the nature which were granted on the new contract. It appears to me to be reasonable to assume some allowance should be made for this factor. The calculation also assumes that full occupancy would be attained immediately on completi on date, which it should be observed was only 3 weeks before the Vacation.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Rent, as on full occupancy, is calculated at $3.00 per square foot. When the bull store was let in 1975 the rent was $2.64 per square foot. It is by no means clear that gross figur es are a proper basis for actual loss. Mr. Kasabia said that in 1973 he was expecting $3.00 per sq. ft but there was no other evidence to support this claim. A valuer called by appellant said there was not much variation in rentals between 1973 and 1975. H e also said that floor space of the extent of the bulk store would not be easy to let. It was, in the event, let to the Ports Authority in 1975. The authority was not, according to Mr. Kasabia, in need of space before October 1974. The original intention was for, appellant itself to use the bulk store for its own purposes but some portion was \'93to be let on rent immediately\'94 . It appears that some prospective tenants were making inquiries in early 1974 but there is no evidence to show what rentals they might be prepared to pay. What loss appellant suffered as a result of not being able to occupy the bulk store at the prospective time of completion of respondent contracts is not adhered to. It may defer very considerably from a gross rental claim.}{ \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri432\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin432\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 If, as I ha ve held, a contract ought to have been let on tender or by negotiation based on prices at the end of July 1973 it is reasonable to suppose that a new contract could be signed and work started by the end of August - a delay of 4 months. A claim for a perio d of 9 months\rquote delay against the new contractor was settled for $37,500 although the architect said the loss of rentals should have been fixed at $72,000. For myself, in view of the uncertainty and lack of proof which has arisen in evidence in this case, I would have thought the figure of $35, more realistic.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The learned judge said that the evidence is, to say the least, sketchy and unsatisfactory and he goes on to state that two major assumptions were made. However, difficult it may be on the evidence to make an assessment for the period now in issue, yet an assessment must be made of what might reasonably have been the result to appellant if respondent\rquote s contract had run a normal course, including a - reasonable allowance for permissible delays as was the case with the new contract. No attempt was made to assess appellants\rquote expected loss for being unable to occupy the premises as it intended. It may well be appellant is better off on the basis of letting the premises as it did on the later date. The eviden ce is all aimed at proving what eventually took place and not what the position would have been if the original intention had been carried out. I have read the judgment of Gould V.P., on this head of damage. After weighing the various uncertain factors wh ich I have adverted to above and approaching the task in the light of the sketchy and unsatisfactory nature of the evidence, I am of opinion also that reasonable estimate of loss is a sum of $18,500.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I would allow the appeal with the results proposed in the judgment of the learned Vice President.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 I would dismiss the cross-appeal and allow the appeal.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 MARSACK J. A.:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 The relevant facts in this appeal have been fully set out in the comprehensive judgments of my learned brethren, which I have had the a dvantage of reading. On those facts I am satisfied that there was no justification for the stoppage of work on the part of the respondents, who were then definitely in breach of the contract and, liable in damages to the appellants. There was however, an o bligation on the part of the appellants to take all reasonable steps to minimise the damage they suffered; and the facts proved show that this was not done, and that they were responsible for undue delay, quite unnecessary in my opinion, in letting anothe r contract for the completion of the work. Accordingly, they were, in my view, entitled to damages only to the extend of the loss which would have been suffered if they had acted with all due diligence in this respect.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 It is a little difficult to fix a de finite date by which such new contract should have been let; by taking into consideration all the factors established by the evidence, I am prepared to accept the date July 31}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\super\langnp2057\insrsid4392595 st}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cs15\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 1973 as reasonable in the circumstances.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 As to the quantum of damages, to wh ich most of the argument before us was devoted, I find myself in full agreement with the figures arrived at by my learned brothers. In the result I fully concur with the judgment proposed by the learned Vice President.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Appeal allowed; cross-appeal dismissed.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid4392595 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard \ltrpar\qc \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Gould V.P.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Marsack J.A.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid4392595 Henry J.A.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 \par }\pard\plain \ltrpar\s18\qc \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4392595 \cbpat8 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\insrsid4392595 ----------------------------------------------------------- \par }\pard\plain \ltrpar\ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang5129\langfe1033\cgrid\langnp5129\langfenp1033 {\rtlch\fcs1 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