Enforcement of Claimant's Contractual Relationship

Requesting the enforcement of the Claimant's contractual relationship with the First Defendant and the Borrower, or alternatively compensation for the work and services done to property and losses arising from the First Defendant's and Borrower's breach of contract.

APRIL 6, 2020
Requesting the enforcement of the Claimant's contractual relationship with the First Defendant and the Borrower, or alternatively compensation for the work and services done to property and losses arising from the First Defendant's and Borrower's breach of contract.

Background:

The case is in relation to a contractual arrangements of a property maintenance and operations agreement of a leased property between a bank (the "Claimant") and property management company together with development company as the First Defendant and a Borrower. Requesting the enforcement of the Claimant's contractual relationship with the First Defendant and the Borrower, or alternatively compensation for the work and services done to property and losses arising from the First Defendant's and Borrower's breach of contract.

Legal Issues

  • The First Defendant and the Borrower's breach of the contractual obligations towards claimant
  • Compensation according to the contractual agreement.

Legal AnalysisThe Supreme Court ordered the Appellate Court to reassess the matter clarifying that since the Borrower signed the agreement with the Claimant (after the date of agreement between the First Defendant and the Borrower) in its personal capacity and not by its capacity as proxy, the Borrower was to bear responsibility of a breach of its contractual obligations and is to compensate the Claimant - jointly with the First Defendant - for all works and services done to the property and the losses it suffered as a result.

Decision:

The Court considered the Borrower had incorporated their own terms and conditions into the contract with the claimant. Also, it had signed the contract in their own name and capacity and had not acted in their capacity as signed in the contract. Moreover, the Borrower gained benefits and managed to collect the finance instalments. Therefore, the Borrower was jointly responsible with the First Defendant to pay the claimant for expenses spent on the property and to compensate for such.

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