B205: Frank recently purchased on January 2021 an old pre-war two-story corner terrace shophouse at 435 East Coast which was in a dilapidated condition: Business Law Assignment, RP, Singapore

University Republic Polytechnic (RP)
Subject B205: Business Law
  1. Frank recently purchased on January 2021 an old pre-war two-story corner terrace shophouse at 435 East Coast which was in a dilapidated condition. His intention was to turn the property into a residential dwelling/business premises. He planned to stay at the 2nd/3rd floors and to let out the ground floor to Woon Li who wanted to run a Peranakan Restaurant as there was only one such restaurant in Katong. The adjacent houses in the vicinity were all eateries that were well patronized at night and during weekends.
  2. Frank previously worked as GM of Leong Brothers Construction Company, a small & medium-sized company as its Chief Operating Officer though he was the company’s accountant. He had hands-on experience in managing construction projects as he did a Diploma in Building with Singapore Polytechnic.
  3. Frank signed a Design & Build Contract with Nathan Hong for renovating the property costing Singapore dollars $800,000. The contract was modeled on the Singapore Institute of Architect (SIA) model project agreement. He paid $200,000 as of the initial payment for the project. Nathan Hong his contractor is a member of the Real Estate Developers’ Association of Singapore
  1. Ms. Woon Li is the owner of Woon Li Peranakan Restaurant. She planned to open the restaurant on the 1st January 2022 which happens to be her 50th birthday. As early as December 2020 she was sourcing for a prospective place for her business. Woon Li was Frank’s ex-wife and to support him she took up rental of the ground floor premises of his shophouse. Frank offered her a 20% rebate because of their relationship.
  2. Being an MBA graduate in project management, Woon Li did the following:
    • Ordered special chillers from Germany to be delivered and installed by end of November 2021
    • Commissioned a design consultant to design the décor of the restaurant and get the necessary furniture and decor.
    • Got an engineering firm to design and construct a customized air vent for smoke to be emitted from the Kitchen at the back of the ground floor premises.
  3. It was only on 6th November 2021 Frank informed Woon Li that due to the construction staff having contacted COVID 19, the opening has to be delayed. Frank told her the project will be delayed by 2 months.

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