ABSTRACT
In January 2004, Exmouth University acquired a large site, containing a derelict factory, on which it proposed to build a new hall of residence. In connection with this project, it took the following steps: (a) it engaged a firm of architects, Shark & Co, to draw up plans for the new building. The
contract price was to be £12,000, with a deposit of 7.5% payable immediately. Dim, the University’s finance officer, incorrectly calculated the deposit as £1,800 instead of £900 and paid the larger amount to Shark;
(b) it offered the job of clearing the site to tender. The lowest tender (£28,000) was received from Crush & Co, and the University decided to contract with it. Negotiations on the details of the contract were slow, but in the meantime the University allowed Crush onto the site to start work; and
(c) it bought 20,000 used bricks from Facers Ltd, at a price of £20,000. Several hundred of the bricks were used immediately to repair buildings on the University’s main site. The rest were to be used for the warden’s accommodation at the new hall.
