Cases - Baese Pty Ltd v R A Bracken

Record details

Name

Baese Pty Ltd v R A Bracken

Date

(1989)

Citation

52 BLR 130

Keywords

Construction contracts - liquidated damages - delayed completion - nil sum entered as liquidated damages provision in standard form of building contract - whether liquidated damages payable - whether unliquidated damages payable - whether parties envisaged no damages payable for delay

Summary

In this Australian case concerning the construction of a house on Australian JCC standard terms of contract, the liquidated damages for delay were stated as 'nil'. Practical completion was delayed by a month, and the claimant brought an action for interest charges levied against him during the extended period in which the works were incomplete. The defendant relied upon Temloc v Errill. The Supreme Court of New South Wales refused to follow Temloc v Errill, stating that it was of no assistance as it was a contract on 'materially different terms', and allowed the recovery of unliquidated damages. The distinction can possibly be explained on the basis that it was more likely that no precise figure for LADs could be stated at the time of contracting, rather than evidencing the fact that the parties envisaged that no damages would be payable for delay.