Assignment sample solution of Liability for Subcontracting and Delay: A Contractual Dispute Analysis

John, a small business owner, enters into a contract with XYZ Constructions Ltd. for the renovation of his office. The contract specifies that the work must be completed within three months, and any delays will result in a penalty of $500 per day. Halfway through the project, XYZ Constructions Ltd. subcontracts a portion of the work to ABC Interiors, without John’s prior approval. Due to ABC Interiors’ poor workmanship, significant delays occur, causing John financial losses. John refuses to pay the full contract price and claims damages for the delay. XYZ Constructions Ltd. argues that they are not responsible for the subcontractor’s poor work and that John cannot claim damages beyond the penalty clause. Analyze the contractual issues in this case, citing relevant principles and case laws