On 19 March 2021, Buffy enters into voluntary administration. Given the circumstances, Plato decides that it no longer wants Buffy to continue with the construction works and wants to engage another head contractor complete the work under the contract (WUC).
Question 1 (6 marks)
Advise whether Plato has the legal right to have the WUC completed by another contractor and, if so, what options does Plato have under the contract to achieve this?
Recommend the option which you consider to be the best commercially for Plato to take under the contract in order to have another head contractor complete the work under the contract. Explain the procedural steps which Plato will need to take under the contract to exercise this option, and the commercial advantages to Plato of choosing this option to get the work completed.
Question 2 (6 marks)
Draft an appropriate notice to show cause for Plato to give to Buffy. Your ‘notice to show cause’ should be dated 22 March 2021 and will be delivered by hand to Buffy before 4pm the same day. The notice to show cause should identify three alleged substantial breaches and identify the relevant substantial breach clauses in the contract conditions.
Question 3 (4 marks)
After receiving a written notice from Plato pursuant to clause 39.4 a) of the contract conditions, Buffy demands the release of the security it has provided to Plato under the contract. Advise whether Buffy is indeed entitled to have the security released.
Question 4 (5 marks)
How would your answer to Question 1 differ if Buffy had not committed any substantial breaches of contract prior to entering into voluntary administration on 19 March 2021?