Mr. Patel, an electrician, was commissioned by KNOW IT ALL (PTY) LTD to do all the electrical work in a new development. The development comprised of 20 residential units.In terms of Mr Patels contract with the building contractor, Mr Patel was to charge R20 000.00 per unit upon completion of the unit. All the units were ready for electrical work. Once the work on any particular unit was complete, Mr Patel was to issue an electrical compliance certificate allowing the next builder to close the ceilings and complete his allotted taskMr Patel completed 5 units and issued 5 electrical compliance certificates.The next builder duly closed up the ceilings. KNOW IT ALL decided to do an inspection of all contractors work and called in the electrical compliance board to do a due diligence on all electrical work.The electrical compliance board found that the wire used in the ceilings by Mr Patel was not the correct wire. Over time they opined that the wire would fray and make the entire house “live”. This was extremely dangerous.The compliance boards report recommended that all roof electrical work be redone. This entailed the chopping of ceilings and replacement of wires. Per unit the cost would be R17 000.00.KNOW IT ALL approach you and ask your advice on the following:
1. In terms of the law of contract can they sue Mr Patel for the cost of R17 000.00 that they are now required to pay to rectify the errors. Assume that the electrical compliance boards report is correct.
2. Do you think Mr Patel has any defence to the claim in one above.
3. Evaluate the advantages and disadvantages of having the dispute resolved through mediation as compared to litigation.
- Students are expected to critically examine the issues involved in a situation where an electrical contractor does not do work according to specification.
- Answer the question posed in the scenario above with reference to caselaw and sound legal reasoning. Analyse the claim that KNOW IT ALLcould have and the potential defence Mr Patel Ltd can raise
- Present an explanation of mediation and litigation as dispute resolution process available to resolve this dispute. Examine the advantages and disadvantages of both approaches in resolving this conflict.