Question Mr. Hong and Ms. Wong have been thinking of renovating their mansion to get it ready for Christmas. They had planned a major celebration this year, in conjunction with their 50th wedding anniversary. They found a contractor, Innovation Designs Pte Ltd. Prior to handing over the payment to Innovation Designs, Mr. Hong informed Innovation …
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Question
Mr. Hong and Ms. Wong have been thinking of renovating their mansion to get it ready for Christmas. They had planned a major celebration this year, in conjunction with their 50th wedding anniversary.
They found a contractor, Innovation Designs Pte Ltd. Prior to handing over the payment to Innovation Designs, Mr. Hong informed Innovation Designs that it is very important to him that the ceiling be done with water leaks being solved as lately, there have been several watermarks on the wall. Given that the rainy season is coming (usually in November/December period), it is paramount that the water leaking issue is resolved.
In response, Innovation Designs assured Mr. Hong, “I am a waterproofing expert. Water fears me!”. Mr. Hong had a good laugh but is satisfied with the assurance made by Innovation Designs. He confidently handed a down payment of $50,000. No written agreement was signed as a special bond was forged between the two parties. Both Mr. Hong and Ms. Wong moved out of the mansion for the renovation to begin. They found a service apartment that charged $3500 per month. They signed an agreement to stay there for 3 months.
Advise Mr. Hong on whether there was a legally binding contract between Mr. Hong and Innovation Designs. You are to assume that there were valid offer and acceptance.
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