Deepak hired Ace Contractors to renovate his footwear showroom. Ace quoted Rupees 15 lakhs for the job. Deepak agreed to the price and signed the contract.
Unfortunately, a few months after Ace finished the job, the showroom started having several issues like paint peeling and walls leaking. Deepak asked Ace Contractors to fix the problems, who refused as the contract did not require them to do so.
Repairing the showroom cost Deepak a lot of money, both in terms of money spent and lost business from having to close the showroom.
A few simple changes to the contract would have protected Deepak from Ace’s shoddy work. The Agreement should have specified either that Ace Contractors would have to rectify any defects in their work or compensate Deepak for losses incurred because of their shoddy work, including compensation for opportunity losses
Further, the Agreement should have included an ODR friendly arbitration clause to ensure that Deepak could enforce the contract quickly and cheaply.
Disclaimer: All characters and names are fictional. This is a public interest story, produced by House Court, an online arbitration platform