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University Degree: Contract Law
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Postal rule was an arbitrary choice in the 19th Century. Modern technologies make it redundant. Therefore, it should be abandoned as an obstacle to fairness in contract law.
It was arbitrary, because there was no range of choice for communication and the postal services were the only option for distance contracting. Modern technologies and inventions make it redundant and unfair. In this coursework, I have explored the advantages and disadvantages of the rule and whether it should be justified today. Postal rule is no longer needed because in the 21st Century, contracts can be concluded in seconds, using both instantaneous and non-instantaneous methods of communication with little or no risk of loss and delay.
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Exclusion clauses case. The first step that will be taken for Wills claim of the ten-thousand pound personal injury that he had encountered would be to verify whether the exclusion clause is clearly incorporated into their contract. The case states that
Will would have to consider the necessary actions that will need to be taken when dealing with his claim. a) For the �10,000 personal injury The first step that will be taken for Wills claim of the ten-thousand pound personal injury that he had encountered would be to verify whether the exclusion clause is clearly incorporated into their contract. The case states that the clause was in the prospectus rather than a formal document which Will had agreed to the terms of, as a reasonable person would assume to be no more than a prospectus is an affront to common sense.
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To begin with, damages in contract law usually aim to compensate for financial loss and thus traditionally, damages were not available to compensate non-pecuniary losses, such as anxiety or mental distress. The principle that physical inconvenience had to arise from a breach and that mental distress was not sufficient had already arisen earlier (Hamlin v Great Northern Railway Co5 and Hobbs v London & South Western Railway Co6) but was affirmed in the authoritative case of Addis v Gramophone Co Ltd.
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Brief description regarding the case B asically, this situation starts with the offer of a contract to build a factory at the cost of RM 500,000 from Mario Ltd to Jackie Ltd on 1st March 2010. In the offer, Mario Ltd requested the reply should be sent i
Normally, the method of enforcement is an action for damages for breach of contract, though in some cases the court may compel performance by the party in default. Contract law also helps by compensate innocent parties economically, generally by attempting to put them in the situation they would have been in if the contract had been performed as decided2.There are some elements involved in the contract law; offer, acceptance, postal rule and revocation. These elements will be discussed further below with the case involved.
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This shows that a minor has not reached the age of contractual capacity and therefore the agreements made by them should not be considered as contracts. A minor may not be mature enough to understand the contents of the contract to be able to enter it. Besides that, there are some adults who knowing that they are dealing with minors, take advantage of that. For example, Restaurant A hires a minor to work at the restaurant as a waiter. However, he not only has to serve the customers but also has to wash the toilets, be the cashier and also close the counter after hours.
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Basically, an invitation to treat is not an offer but an invitation to people to make offer (Lee, 2007). Acceptance is defined in Section 2(b) Contracts Act 1950 stated that 'when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted: a proposal, when accepted, becomes a promise'. It means that an acceptance is complete and unqualified of assent to the terms of an offer. With an acknowledgment which it express terms or, in a particular context by implication, contain a statement that the person agreed to the terms of the
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This report will provide a brief introduction about Consideration, Offer and Acceptance , and Terms Of Contract. The binding precedent of every description will be presented in this report too. Then, in the end this report will provide the conclusions of
This is known as the rule in Pinnel's Case. There are number of exceptions to the rule. (Source : Keenan, D & Riches, S 1998, Business law, 5th edn, Financial Times, Pitman Publishing, pp. 274-2) 1. If the smaller payment is made, at the creditor's request, at an earlier, at a different place, with an additional item or by a different method, consideration has been shown. 2. A lesser sum is paid at the time the debt is to be repaid that decision to waive must be supported by consideration.
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An offer can be made in any form: oral, written or by conduct5. In addition an offer can be made to an individual, group or the whole world. In Carlill v Carbolic Smoke Ball,6 a unilateral contract was made. The Company advertised a medicine, and promised that any purchaser using it correctly would be immune from a range of illnesses. The company stated that anyone using the product that still got flu would receive �100. Mrs Carlill did get flu after using the medicine in the fashion stated and sued successfully for the �100.
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Henry9 where the viewing "the Coronation precession was the foundation of the contract, and the non-happening of it prevented the performance of the contract"10, though performance was possible however pointless, leaving the contract frustrated. Under the common law, it was in the original rule that when a contract is frustrated, the parties are relieved from further performance from this point, however they are bound by the obligation arouse before the supervening event. Thus in Krell v. Henry11, the defendant was not liable to pay the balance of the agreed rent where the supervening event happened before the suppose payment of balance.
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His nephew did not reply, and the horse was sold by mistake, the auctioneer having had instructions from the nephew not to sell it. After the sale the nephew wrote to plaintiff the contents of which letter showed that he intended to accept his uncle's offer: As there was no memorandum in writing binding the nephew at the time of the sale, and no evidence that he had at that time accepted the offer, no contract had been made. There can however specify the method by which acceptance is communicated.
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whether he has any contractual liability to Jim (the sub-contractor electrician) to pay the promised bonus of �5,000. Answer: We are asked to advice Tony whether or not he is actually contractual bound to pay an additional sum to Neil and furthermore whether he has any contractual liability towards to Jim, the sub-contractor electrician, to pay the promised bonus of �5,000. Tony has made a search before concluding the contract with Neil in order to obtain various estimates for the construction of Greenacres, notwithstanding Neil's offer seemed to be the most attractive one since it was the lowest of all.
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employer / employee) * Over the last century, substantive fairness (distributive justice) has developed, which aims to redress the balance of power between unequal parties, giving protection to the weaker one, like employees (cannot be dismissed without reasonable grounds), tenants, consumers, persons who are not of full age or understanding * Also, law of contract exists to protect public interest, for example where public policy requires that contracts entered into for illegal purposes should not be enforceable (iii) The objective approach * Problems may arise as to what the parties agreed to in a contract, for e.g.
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But the offeree, after dispatch of the acceptance, knows that he has done all he can to ensure that he has a contract and will want to rely and act on that contract. Evans agrees with Nussbaum, attributing the postal rule to the absence of firm offers in common law combined with this desire to protect the offeree from revocation3. He acknowledges another, partial, reason advanced for the rule in that where the acceptance may become lost in the system in many (but not all and hence why the reason is only partial)
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Whilst Peter Gibson LJ recognised4 that any creditor accepting less for the same "will no doubt always see a practical benefit to himself in doing so" he refused to recognize this as valid consideration for two reasons: first because Foakes v. Beer did not do so even after express consideration. Second, to extend Williams v. Roffey in this way would deprive Foakes v. Beer of any application when there had not even been any express consideration of Foakes v.
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High Trees House Ltd  KB 130 at 134 Discuss. THE UNITED KINGDOM INTRODUCTION First and foremost, in the case of Central London Property Ltd v. High Trees House Ltd1 (hereinafter referred to as "High Trees"), the plaintiffs made a promise to allow the defendants to reduce the rent of a block of flats in London from �2,500 to �1,250. It was made known by both parties that the reduced rent was the result of wartime which causes the defendants unable to pay the original full rent as there were only a few of the flats were let to tenants.
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Under contract law, there is no contract if there is no consideration. The traditional definition of consideration was set out in Currie v. Misa2, that is: "A valuable consideration, in the sense of the law, may consist either in some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss of responsibility given, suffered or undertaken by the other." In the case of Stilk v. Myrick, the sailors promised to work and in return, were promised to be paid �5 per month.
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This decision was further upheld by House of Lords in Macaura v Northern Assurance Co. Ltd3 and subsequently followed by Privy Council in the case of Lee v Lee's Air Farming4. It was then incorporated into Companies Act 1985 under S13 (3)5 stating that a company will be seen as separate legal entity from its members as long as all the requirements under the Act regarding incorporation and the registration have been complied with6. Rationales of limited liability and the pros and cons of it's applications Corporate personalities allow the shareholders relish unlimited up-side gain, while down-side risks are limited.
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Waiver and promissory estoppel are those ways that are recognized in English Law to make promises binding without consideration. WAIVER Waiver had traditionally been applied where one party agrees the other that he will not enforce their strict rights under the contract.11 The case of Hartley v Hymans,12 show how waiver operates.13 EQUITABLE ESTOPPEL Equitable estoppel is a newer doctrine compared to waiver, and could be said to be a development of it. Hence, this doctrine works along the line of waiver. It is known as 'equitable estoppel' because this doctrine is derived from equity. It too recognizes one- sided variations of a contract even without consideration to support them.
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Critically examine and discuss the inter-relationship between the law of Contract and the law of Tort
The law of tort serves a variety of purposes and uses a number of different techniques to achieve its ends, For example, in the leading case of Donoghue v Steven1which establishes that tort can be capable of providing a remedy free from constraints of contract doctrine to third parties affected by the performance of a contract. The law of tort also protects a wide range of interests, such as personal security, for example trespass to the person, medical negligence, and liability for nervous shock, liability and statutory duties in health and safety.
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One objection to allowing economic loss claims in negligence is that it would involve the courts having to assess quality, whereas if the claim is brought in contract the quality has already been fixed by the contract itself. Donoghue v Stevenson  AC 562, 34 in this case the Claimant had gone to a cafe with a friend, who had bought her a drink of ginger beer. She had poured some of the drink into a glass and consumed it. When she poured the rest she found the decomposing remains of a dead snail which resulted in her feeling unwell.
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The House of Lords also found that due to the fact that there had not been any 'special relationship' between the second defendant and the claimants that therefore the second defendant did not at any point express that he had held personal responsibility for their dealings. As we can see from that case the defendant did not have any assumption of personal responsibility towards the plaintiff or did they have any special relationship and therefore the claim for damages related to the pure economic loss of the plaintiff failed.
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This is often the case in time of emergency i.e. to impose sanctions. Byelaws are made by delegated legislation but generally operate only in the locality of their creation. Delegated legislations can be challenged either in court through judicial review or as part of the defence. One of the reasons to challenge may be because the legislation is deemed to be ultra vires, or beyond the powers of the body or institution that passed the legislation originally. Judicial precedent is the process by which judges can use the decisions of previous cases as the authority for the basis of their decision, as long as there is sufficient likeness in the facts.
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However, the objective approach is open to criticism in that it is a position to be abused and exploited for its own gain. It can thus be seen as not agreeing with Adams and Brownsword in that it promotes both commerce and fairness for reason that being absolutely objective is a near impossible concept. One is then persuaded by the arguments put forward by Howarth in that 'objectivity is in the opinion of different courts.' 3 .Thus objectivity is in the hands of the law to give reign to interpret as it desires, and it also allows the judiciary to
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Explain what judges take into account and what they ignore in deciding whether or not the lack of consideration is fatal to the existence of a binding contract.
consideration, a pious respect for the wishes of the testator, does not in any way move from the plaintiff: it moves from the testator, therefore legally speaking it forms no part of the consideration, it is a mere voluntary gift"3. Judges once satisfied that consideration exists, must decide whether the consideration is sufficient however it need not be adequate. If there is an economic legal value to the given consideration the courts cannot "question whether that value is adequate and will not interfere with the fairness of the bargain made by the parties4".
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Critically examine how the law on exclusion clauses in contracts has developed and the key issues of legal policy to which the present law gives rise.
Exclusion clauses-a definition According to P. S. Atiyah an exemption clause "...exempt a party from a liability which he would have borne had it not been for the clause."3 . This exemption can range from total exclusion from liability to partial exclusion otherwise known as a limitation clause. While it appears clear what exclusion clauses are to be used for in everyday terms, there are two main views, which can be used when deciding on the legal function of such clauses.
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