Exam 12: The Extent of Contractual Rights

Mr.Richards instructed the contractor who was building his new house to face it with a special synthetic marble made by Messier Ltd.Messier had promised Mr.Richards in writing that the synthetic marble would last longer than the Parthenon and be in better shape.Within three months of its installation,which was properly done,the "marble" was cracking,discolouring,and crumbling at the seams.Mr.Richards can sue Messier successfully although it was not he but the contractor who made the purchase from Messier.

Mr.Black enters into a contract with Build-It Construction Ltd.for the construction of a house.The house is not built in accordance with the contract.Mr.Black sues Build-It Construction Ltd.seeking $200,000 in damages.He is successful,but discovers that Build-It Construction Ltd.has insufficient assets to satisfy the judgment as it regularly transfers its assets to its parent company Build-It Holding Company Inc.Can Mr.Black collect the $200,000 from Build-It Holding Company Inc.