Kurt enters a contract in January to build a new car body for Mr Mudra’s Italian sports car. Mr Mudra had recently bought the car, but it was severely damaged in an accident.
Kurt enters a contract in January to build a new car body for Mr Mudra’s Italian sports car. Mr Mudra had recently bought the car, but it was severely damaged in an accident. Mr Mudra engaged Kurt to build the body for the car because Kurt agrees to build the body in ‘four or five months’ and the contract states it will be ready by June that year. Mr Mudra pays Kurt £10,000 to complete the work. When this time had passed Mr Mudra contacts Kurt. Kurt says that the body wasn’t complete but ‘would be soon’. Kurt asks Mr Mudra to give Kurt a chance even though the agreed time period has elapsed. Mr Mudra agrees to wait a further three months until September however, it is still not delivered by then. Mr Mudra informs Kurt that he intends to take the car abroad with him in four weeks’ time and that time is of the essence therefore, if it is not ready by then, Mr Mudra would have to buy another car for the trip. Mr Mudra is then informed by Kurt that it would not be ready for this deadline of November. Mr Mudra buys another car to take on the trip. Mr Mudra then contacts Kurt to advise that he will be claiming back the money he had paid for the work to be done because he failed to complete the work by June. Worried by this, Kurt completes the car in time for November and attempts to deliver it, but delivery is refused by Mr Mudra.
(d) Kurt argues that Mr Mudra must take the delivery. Is Kurt correct that Mr Mudra is obliged to take delivery? Explain your answer.
(e) Kurt has undertaken some research on the internet and believes that Mr Mudra cannot claim back his £10,000. The reason is because there is a ‘legal rule’ that states because Mr Mudra agreed not to enforce the June deadline and agreed September, he cannot make a claim now. Identify the rule under the law of contract that Kurt is referring to and explain to Kurt if Mr Mudra can claim his £10,000.
(f) Would it have made any difference under the law of contract if, following the failure to deliver in June, Kurt asked if the car body could be delivered ‘whenever Kurt managed to do so’ and Mr Mudra had agreed? Explain your answer with reference to case law where necessary
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