McCabe Builders(Dubllin) Ltd -v- Sagamu Developments Ltd & ors [2009] IESC 31 (01 April 2009)

McCabe Builders(Dubllin) Ltd -v- Sagamu Developments Ltd & ors [2009] IESC 31 (01 April 2009)

A binding contract existed between McCabes and Sagamu Developments Limited, the terms of which are set out in the RIAI Articles of Agreement and Conditions of Contract 2002 (Revision 1, Print 4) as signed, together with the letter of 5th August 2005 (signed by both parties) and the documents referred to and incorporated therein. The Bill of Approximate Quantities forms part of the contract to the extent that it is incorporated by reference through the August correspondence and the parties' course of dealing, notwithstanding the RIAI form's exclusion of quantities except as a schedule of rates. The parties' clear intention to be bound by a formal contract and their conduct override the...

Citation
[2009] IESC 31
Parties
Plaintiff/respondent: McCabe Builders (Dublin) Limited; Defendant/appellant: Sagamu Developments Limited; Defendant/appellant: Laragan Developments Limited; Defendant/appellant: Hanly Group Limited
Jurisdiction
Ireland
Judgment Date
01 April 2009
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court Decision
Outcome
Appeal allowed; High Court order set aside
Legal Topics
Formation of Contract, Interpretation of Contract Documents, Tender Process, Quantum Meruit, Rectification, Standard Form Contracts
Contract Law Construction Law Formation of Contract Interpretation of Contract Documents Tender Process Quantum Meruit Rectification Standard Form Contracts

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Parties

McCabe Builders (Dublin) Limited

Plaintiff/respondent

Sagamu Developments Limited

Defendant/appellant

Laragan Developments Limited

Defendant/appellant

Hanly Group Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court Decision

Legal Issues

  1. 1 Whether a binding contract existed between the parties for the construction project
  2. 2 Whether the Bill of Approximate Quantities formed part of the contract documents
  3. 3 Whether the RIAI standard form contract excluded the Bill of Approximate Quantities except as a schedule of rates

Ratio Decidendi

A binding contract existed between McCabes and Sagamu Developments Limited, the terms of which are set out in the RIAI Articles of Agreement and Conditions of Contract 2002 (Revision 1, Print 4) as signed, together with the letter of 5th August 2005 (signed by both parties) and the documents referred to and incorporated therein. The Bill of Approximate Quantities forms part of the contract to the extent that it is incorporated by reference through the August correspondence and the parties' course of dealing, notwithstanding the RIAI form's exclusion of quantities except as a schedule of rates. The parties' clear intention to be bound by a formal contract and their conduct override the...

Court Disposition

Appeal allowed; High Court order set aside

Orders

  • Declaration that a binding contract exists between McCabes and Sagamu Developments Limited on the terms of the signed RIAI contract, the August 2005 letter, and incorporated documents as set out in the counterclaim.