Discussion about defendants were liable for pay damages


Assignment task:

Structures Limited is a foreign based business. It designs, makes and sells prefabricated building installations. To invest in the rapidly expanding South Pacific construction industry, it appoints Matrix Engineers, a chartered engineering firm, to represent its business interests in the 12 USP countries. The firm is being paid on a commission basis by Structures Limited for a spot fee of $500 per work hour. On the 15th of May 2022 Matrix Engineers successfully negotiated a deal worth $1million for the design and construction of a hydro-electric plant with the Nauru Civil Construction Authority (NCCA). Matrix Engineers sent an email letter informing Structures Limited of the deal and in particular whether they should accept the contract. Since no reply came after a week and being eager not to miss the deal, Matrix Engineers accepted it on behalf of Structures Limited. To obtain, a loan to start the construction, Matrix Engineers used the name of Structures Limited for a bank guarantee in return for $50,000 from Investment Bank Limited. Using the proceeds from the loan, it purchased building materials from Galaxy Materials Limited. Unknown to Structures Limited, Matrix Engineers own nominee shares in Galaxy Materials Limited. The project was completed and handed over to Nauru in record time. However, due to poor engineering design and workmanship, the dam supplying water to the project collapsed thereby resulting in severe environmental damage and injuries to nearby residents. The Nauru Civil Construction Authority has now filed a writ in the Supreme/High Court for damages against Structures Limited and Matrix Engineers. The Supreme/High Court in its judgment held that the defendants were liable for pay damages of $2million to the plaintiff. Argue the Appeal by submitting your written submission on the relevant issues from the above facts.

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