Morrison v Moss

Morrison and Moss were the parties involved in this case. The dispute centred on construction works for a residential dwelling. The court had to determine whether practical completion had occurred due to the owner’s entry into possession, whether the Builders breached any implied statutory warranties, and if the works were defective or incomplete. Additionally, it was necessary to decide if the works were ‘practically complete’ and whether the Builders should be ordered to rectify defects.

The legal issues involved examining whether an implied term existed regarding the completion date of the works and if such a term had been breached. The court also needed to determine if the contract was validly terminated and if the terminating party was entitled to exercise an express right to terminate despite being in breach. Furthermore, the issue of the costs of rectifying defective works was referred to a referee for determination.

The court found that practical completion had occurred due to the owner's entry into possession, which triggered the implied term for completion. The Builders were held to be in breach of the implied statutory warranties. The works were deemed defective and incomplete. Consequently, the court ordered the Builders to rectify the defects. Regarding the contract, it was determined to be validly terminated. The terminating party was found not to be entitled to exercise the express right to terminate due to their own breach. The issue of the costs of rectification was referred to a referee for resolution.

The final orders mandated the Builders to rectify the defects within a specified timeframe. The terminating party was required to reimburse the Builders for the costs incurred up to the date of termination. The costs of rectification were to be determined by the referee and paid by the party found liable.