Question Tag: Performance of contract

Chief Wadada, a very prosperous trader, recently completed the construction of a mansion in his village and intends to have the house-warming ceremony on New Year’s day. He contracted Exclusive Décor Enterprises to do the interior decoration of the mansion, which must be completed not later than a week before the house-warming.

Exclusive Décor Enterprises moved all the required materials to site on schedule, but a heavy rainstorm ravaged the whole village, flooded the mansion, and destroyed all the materials on site. The decoration could no longer be done until after the New Year’s day when the flood would have receded. Chief Wadada canceled the contract and refused to pay the contract sum demanded by Exclusive Décor Enterprises, who intends to make a claim in court for the payment of the contract sum.

Required:
Advise Exclusive Décor Enterprises, stating the legal issues involved. (8 Marks)