A written agreement between John and Peter (the Agreement), John agreed to
construct a bungalow for Peter in the sum of HK$1.0 million. John was also
agreed to complete the building by 30 June 2012.
Despite repeated warning notices, John could not complete the building 1 month
after the original contract completion date. On 30 July 2012, Peter wrote to John
that should John be unable to complete the works by 15 August 2012, he would
terminate the Agreement without further notice. On 16 August 2012, John had not completed the work and therefore Peter terminated the Agreement and had engaged other to complete the remaining work in an extra sum ofHK$0.15 million.
John warned that unless Peter settled full payment to him, his workers would
enter the site and not allow other to carry out the remaining work.
Since Peter was not able to deliver the bungalow to his buyer on time, he had to make compensation to the buyer in the sum ofHK$0.2 million.
Advise and explain Peter as to:
1)Whether he can terminate the Agreement if the Agreement has liquidated
damages andextension oftime clauses?
2)Whether he can claim the extra sum and the compensation as remedies in common law from John?
3)What action(s) he can take to prevent John's workers from entering the site?
1)Whether he can terminate the Agreement if the Agreement has liquidated damages
and extension of time clauses?