Kay’s solicitor to Expandify’s lawyer: trust offer and termination dispute

Kay’s solicitor’s response, 18 September 2026 at 4:17 PM

Dear Colleagues,

We refer to your email below.

Our client rejects your client’s assertion that it is ready, willing and able.

Your client does not have a current nominee so it is not permitted to carry out building work under s42B of the Queensland Building and Construction Commission Act 1991 (“QBCC Act”). Further, the contract does not comply with the requirements of Schedule 1B of the QBBC Act so your client is prohibited from under section 30 of Schedule 1B of from commencing any building work under the contract.

Further, your client has yet to respond to our client’s breach notice of 4 September 2026 in respect to the appointment of a nominee and advising our client of the nominee’s name. As previously addressed in earlier correspondence as the agreement includes the undertaking to carry building work it is considered a building contract under the QBCC Act.

Our client reiterates that it will pay the 30% progress claim into your firm’s trust account on the terms of provided in our letter of 11 September 2026. Given that it is also breach of Schedule 1B of the QBCC Act (the section 34) for your client to claim an amount for works under the contract unless the amount is directly related to progress of carrying out the subject work at the building site and proportionate to the value for the subject work, our client’s offer is not only reasonable but is in your client’s interests given the potential maximum penalties for your client’s breaches of s42B, s30 and s34 are 250, 100 and 50 penalty units respectively. We note of course your client’s invoice of 21 October 2025 which items suggest that your client has already been paid for the shipping and delivery to site costs.

Finally, our client rejects that she received any invoice on the 30 August 2026. Our client received a reminder for the alleged overdue invoice that was prematurely issued on 9 August 2026 which we attach. It appears that this invoice has been amended by your client after its initial issuing to change the due date from 14 August 2026 to 30 August 2026. We have previously accepted that notice of arrival was received on 31 August 2026, but it is our client position that your client’s conduct is just further evidence of its lack of candour and transparency.

This conduct exacerbates the comments made by your client’s representative regarding your client’s financial stability and in our client’s view there is a real risk that your client will not complete its obligations to install the dwelling leaving our client in a position of uncertainty given the contract contains the unfair term whereby the ownership in the “goods” is not delivered to our client until 100% of the contract price is paid despite the mixed nature of the transaction contemplated by contract.

It is our client’s position that your client is not entitled to terminate the contract and we therefore reserve our client’s rights should your client commit an act of repudiation and unlawfully terminate.