Powell-Smith and Furmston's building contract casebook by M P Furmston; Vincent Powell-Smith

By M P Furmston; Vincent Powell-Smith

Letters of purpose -- bills of tendering -- Tenders and estimates -- Incorporation of records -- final touch of the agreement -- The contractor's tasks -- The employer's duties -- possession and vesting of fabrics -- attractiveness and defects -- Approval and certificate -- diversifications -- Damages for breach of development contracts -- Prolongation and disruption claims -- Liquidated damages and extensions of time -- liberate -- Frustration -- Illegality -- Forfeiture clauses, repudiation and resolution -- dilemma -- project and sub-letting -- family sub-contractors -- Nominated sub-contractors -- construction contracts and the legislation of tort. pt. 1. Formation of the agreement -- pt. 2. functionality of the agreement -- pt. three. Discharge of the agreement -- pt. four. Sub-contracts and sub-contracting -- pt. five. construction contracts and the legislations of tort

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Example text

Selincourt Ltd court of appeal (1973) 3 BLR 104 A contract was made by an exchange of letters. In a letter dated 11 February 1972, the architects asked the contractors to price alteration work. The letter concluded: Assuming that we can agree a satisfactory contract price between us, the general conditions and terms will be subject to the normal standard form of RIBA contract.  your estimate dated 6 March 1972 and I shall be obliged if you will accept this letter as your formal instruction to proceed with the work’.

Note 3 did not set out accurately what had been ‘agreed’. Different dates from those in the programme had been ‘agreed’ orally. But this I regard as a minor matter which could have been easily rectified. This clearly was not an acceptance of the offer made by Chichester on 8 February and confirmed by them by their letter of 14 February. It killed Chichester’s earlier offer. It was, I find, a counter-offer. It was argued that the conduct of Chichester thereafter in preparing for the manufacture of the joinery constituted an acceptance.

Further, that is the edition which a responsible employee of the undertaker clearly ought to send to an inquirer. Viewing the matter objectively therefore, I am of opinion that the parties contracted on the basis of the respondents’ General Conditions of Contract 24001 as revised in March 1970. I do not consider that the reference in the purchase order to ‘General Conditions of Contract 24001’, without any mention of revision, precludes the relevant conditions from being the latest revised version.

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