Star Construction (SC) versus Football Club (FC) In 2015 management Football Club (FC) planned to develop a small clinic

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Star Construction Sc Versus Football Club Fc In 2015 Management Football Club Fc Planned To Develop A Small Clinic 1 (83.35 KiB) Viewed 56 times

Star Construction (SC) versus Football Club (FC) In 2015 management Football Club (FC) planned to develop a small clinic next to their ground for the treatment of injured players. In this regards the management of the club invited management of SC for a meeting and both parties developed an understanding that SC to work on this project at the total cost of $ 75,000 and the facility will be delivered in one year. Star construction (SC) was a well reputed property development and construction company, which has been operating for the last ten years. They specialize in development of small sports facilities. As per conditions laid down by club SC was to obtain the land and construct the facility there was no advance payment. SC began working on the project and spent more than $50,000 of their own money and had spent a lot of time and effort developing the project with an understanding that FC will make full payment once the project is finished However, in 2016, when SC was half way through the project FC informed them due to lack of funds the project has been cancelled.. SC did not accept such a turn of affairs and filed a case against FC on account of un-fair business practices. The lawyers of FC argued that SC has presented no contractual agreement tying FC to any legal obligation to SC. SC on the other hand, demanded damages stating that they have suffered a direct loss of $ 50,000. Their lawyers further argued in the court that the action of FC has also badly damaged SC reputation among its existing and potential clients. Therefore they are entitled to additional damages of $ 25,000 on top of the direct loss claim. This sum should be awarded to SC for the loss of their reputation. Answer the questions below based on the case study (5Mark) 6. Was there a valid contract between SC and FC? Justify your answer. 7. Is there a breach of contract in this case? What type of damages SC is claiming from FC?