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24 December, 15:53

The Northeast Independent School District in Bexar County, Texas, hired STR Constructors, Ltd., to renovate a middle school. STR subcontracted the tile work in the school's kitchen to Newman Tile, Inc. (NTI). The project had already fallen behind schedule. As a result, STR allowed other workers to walk over and damage the newly installed tile before it had cured, forcing NTI to constantly redo its work. Despite NTI's requests for payment, STR remitted only half the amount due under the contract. When the school district refused to accept the kitchen, including the tile work, STR told NTI to quickly make the repairs. A week later, STR terminated the contract.

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  1. 24 December, 16:45
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    this was a breach of the contract

    Explanation:

    In this case, there was a breach of contract on the part of STR. First, the project was behind the schedule and NTI did its part. Then, the STR employees damaged the work that NTI had done. In this right, NTI has the right to be compensated and paid for the work that was done. The onus falls upon the STR to pay the subcontracted NTI irrespective of whether the kitchen as accepted or not. This was because the renovation of the kitchen depended sorely on the responsibility of STR not NTI.
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