Glambed (Trading as Expert Decorative Services) v Klappis

Glambed (Trading as Expert Decorative Services) v Klappis was a decision of the New South Wales Court of Appeal concerning a dispute arising from a contract for decorative services. The appellant, Glambed, sought to recover payment for work performed at the respondent's property, while the respondent, Klappis, alleged the work was defective and sought to offset the cost of rectifying these defects against the appellant's claim.

The primary legal issue before the Court of Appeal was whether the respondent had validly terminated the contract and, if so, whether the appellant was entitled to any payment for the work it had completed. This involved determining the nature of the defects alleged by the respondent and whether they constituted a breach of contract that entitled the respondent to terminate the agreement and claim damages.

The Court of Appeal considered the principles of contract law relating to substantial performance and the right to terminate for breach. It was held that the defects in the work performed by Glambed were not so substantial as to deprive the respondent of the benefit of the contract. Consequently, the respondent was not entitled to terminate the contract and was liable to pay for the work performed, subject to a deduction for the cost of rectifying the minor defects. The Court applied the principle that where a contract is substantially performed, the contractor is entitled to the contract price less any damages for defects.

The Court of Appeal allowed the appeal in part, varying the orders of the primary judge. Glambed was awarded the contract price less the cost of rectifying the defects found to be attributable to its work.