Waire entered into contract with Riuki Contractors in which Riuki Contractors was to construct a house for Waire. They expressly agreed that the house should be completed within four months. By the end of the four months, Riuki contractors had only done half of the work. Waire is aggrieved and intends to file a suit against Riuki Contractors. Explain the legal principles that are relevant to this case. (10 marks)November 2022

In this case, there are several legal principles that are relevant:

1. Contractual terms: The contract between Waire and Riuki Contractors contains a term that the house should be completed within four months. This term is binding on both parties and is enforceable by law.
2. Breach of contract: Riuki Contractors have failed to complete the work within the agreed-upon four months. This is a breach of the contract and Waire is entitled to seek a remedy for this breach.
3. Remedies for breach of contract: Waire may seek a remedy for the breach of contract, such as specific performance (which would require Riuki Contractors to complete the work as agreed), or damages (which would compensate Waire for any losses suffered as a result of the breach).
4. Time as the essence of the contract: Time is an important aspect of the contract and the parties have agreed that completion of the house within four months is of the essence of the contract. This means that time is a vital part of the contract and a failure to complete the work within the agreed time frame is a material breach.
5. Duty to mitigate: Waire has a duty to mitigate their losses by taking reasonable steps to minimize the impact of the breach, such as seeking alternative contractors to complete the work.
6. Duty to perform: Riuki Contractors have a duty to perform the contract and complete the work as agreed. They are responsible for any losses suffered by Waire as a result of the breach.