Innominate terms
INNOMINATE TERMS Sometimes it is hard to determine the status of terms, thus an intermediate category for such terms is developed- innominate terms. Whether termination is available depends on the ‘waiting and seeing’ at time of the breach and whether it is so fundamental to strike the fundamental purpose of the contract. If the breach is serious, it will be classified as a condition and able to be rescinded. and if it is not, it will be classified as a warranty- where rescission is not available. The parties may describe the terms as condition themselves. An examination of innominate terms, the courts will not take this as decisive but judge on the facts of the case. They are thus giventoo much discretion and this may potentially be unjust to parties who has really mean the terms to be construed as condtions.zl In the case of Hong Kong Fir Shipping vKawasaki, Here the claimants have chartered a ship for 2 years. Due to faulty engines and inadequate staff, 20 weeks of the charter has been lost to carry out repairs. The ship was contracted to be ‘in every way fitted for ordinary cargo service’ Hence the defendants have obviously able to claim damages but instead they chose to rescind the contract. The claimants sued for wrongful repudiation- claiming that their breach did not entitle them to sue for damages, Conventionally, the courts will determine the status of
Aspects of Contract and Business Law Case Studies
Temuulen Od-Ochir Unit 21 Aspects of Contract and Business Law 726073 BTEC Extended Diploma in Business INTRODUCTION Contract law is important for businesses because any promises or agreement made in a business should be binding which according to the law should involve some form of exchanges. It would be impossible to run a business without a contract as that would not make promises binding. For example: suppliers would be very reluctant to supply their product to a retail store if that retail store could suddenly decide they are going to buy from different supplier and do not expect to compensate for the money they put in. The contract law helps the innocent party to recover financially given that the contract has been performed as agreed by them. The law helps the organisation to know what to expect if the agreement is not carried and the law doesn’t allow those who fail to perform get away with their breach. Task 1 Below is a contract for the sale of Solid and Frogged bricks for a company building house. Agreement of supplying Bricks Supplier: Amersham &Wycombe Buyer: Temuulen Date to be delivered : **/**/**** Date of Signing : **/**/**** Material Name Unit Price (per unit) Total Price Solid Bricks 50000 £3.50 175.000 Frogged
Assess the problems that arise through terminating and offer
Assess the problems that arise through terminating and offer There are six different ways in which an offer can be terminated, these method are, Acceptance, Rejection, Revocation, Lapse of time, Failure to comply with conditions and Death. Alongside these ways of terminating an offer come problems. The problems that can arise with some of these methods including counter offers being made, revocation of a unilateral offer and the postal rule can cause problems for acceptance and revocation. A counter offer is an offer which has been made in response to a previous offer made by the offeree to the offeror, usually during negotiations when putting together the final contract. By making a counter offer the first offer that was given now becomes void and the counter offer must now be accepted or rejected for it to be recognised as part of the contract. If the original offer has been rejected and another offer put forward in its place is also rejected then the original offer cannot then be accepted, there is no way of going back to the original offer as seen in Hyde v Wrench (1840) in which Wrench had offered to sell Hyde his farm for £1,000, but Hyde rejected this by making a counter-offer and saying he would pay £950. Wrench decided to reject Hyde’s offer therefore forming no contract. As soon as Wrench rejected this offer Hyde said he would go back to the original price
The Legal Principle of Frustration has been limited by the Courts. Explain why and how this has been done
Mark Lam JianHao Saturday, 12 March 2011 The Legal Principle of Frustration has been limited by the Courts. Explain why and how this has been done. Frustration is an event that occurs beyond the control of any parties in a contract that prevents either of the parties from performing their part in fulfilling the contract. However, this is a recent development as common law states that a party was bound to perform their obligations under contract regardless of intervening events and would override any circumstances as in the case of Paradine v Jane in 1647 where Jane had to pay rent even after being forced off the land due to an invasion. The doctrine was developed as a response for a party to discharge the contract due to unforeseeable situations that interrupt the contract. The result is that both parties would be relieved of the burden of performing and the liability for not performing. There are three main types of frustrating events; the first Impossibility is where the event makes performance impossible. This may happen due to the destruction of the subject matter or if it is otherwise unavailable as in Taylor v Caldwell in 1863. But it must been held or intended by both sides to be the subject matter. The second Illegality is where the performance of the contract becomes illegal to do due to either the outbreak of war or the change of a law. An example would be Avery
Economic Loss & Negligent Misstatements questions and answers
Seminar 8 (Week 10): Economic Loss & Negligent Misstatements ________________ Sven, an accountant, is asked by Erik to value shares in Bell Enterprises Ltd to discover whether they are likely to prove a good investment. Sven and Erik are old friends and Sven states that he will value the shares for ‘old times’ sake’ but that any statement which he makes as to the investment value of the shares is to be treated as a statement of opinion and that no reliance is to be placed thereon. Sven’s report states that the shares are certain to be a good investment. Erik leaks the report to the Morning Star, which duly publishes it. Sven also informs Matius, over a drink in the pub that shares in Bell Enterprises Ltd are bound to prove a sound investment. Erik, Matius and Annika, a reader of the Morning Star, purchase shares in Bell Enterprise Ltd and lose a substantial sum of money when the shares in the company drop in value. Advise Sven as to his potential liability. . Negligent misstatement - (when a duty of care is imposed upon a defendant for negligent words which cause loss to the claimant) 2. Sven would not be held liable for Erik, Matius or Annika losing money, because the report and advice he gave to Erik was just of a friend, and should not have been taken seriously . Friends - Chaudhry v Prabhakar [1988] – there will be no duty in respect of advice
Discuss the role of hardship clauses in controlling liability by contract.
TOPIC: DISCUSS THE ROLE OF HARDSHIP CLAUSES IN CONTROLLING LIABILITY BY CONTRACT. Introduction The fundamental principle of the law of contract is that the parties to a contract must carry out their contractual obligations. The principle of hardship operates as a modification of the principle of pacta sunt servanda; it gives relief to a party where performance of a contractual obligation due to change of circumstances becomes extremely onerous. This essay will discuss the role of hardship clauses in controlling liability by contract. The first part briefly states the key elements of hardship clauses. The second part considers the role of hardship clauses in controlling liability from a theoretical perspective whilst the third part undertakes an analysis of the elements of hardship clauses with a view to finding out when such clauses can be used to limit liability under a contract. The fourth part discusses the obligation to renegotiate, and some sanctions for failure to successfully renegotiate a solution in the changed circumstances. . Contents of Hardship Clauses Hardship clauses are usually incorporated in long-term construction contracts, infrastructure projects, joint ventures, management and marketing agreements and other contracts requiring regular performance of services or delivery of goods from a particular source of supply. Though the details of hardship
statutory regulations
Statutory Regulations and Law are listed below: > Health and Safety at work Act 1974 The acts states that the employers must provide safe equipments and working systems. Provide a safe working environment and written policy that include risk assessment. Must provide training, instruction, supervision and must make sure employees are aware of the instructions. Employee must cooperate with their employer and take care of their own health and safety and others. > Partnership Act 1890 This is 2 - 20 people that are joined together as partners. The following are the rights and responsibilities of each type of partners. General partners - they invest and take part in the running of the business and its profits. Each general partners are all responsible for any debts that may occur. Sleeping Partners - they invest and share the profits but don't participate in the running of the business and they are not really liable for the debts since they are not an active partner. Companies - they can be the officers of the partnership and their rights is the same as the other partners but also deal with tax and reporting requirement. > Business Names Act 1985 It applies to a company which trades under a name which is not its corporate name. It requires me to provide the business the name of the proprietor of the business or the name of every partner if the business is a
DIFFEERENT AREAS OF CONTRACT LAW
CASE STUDY LAW CASE STUDY 1 This is an unenforceable agreement which courts will refuse to enforce. It is a gambling agreement or Sponsione Ludicrae (Ludicrous promises). It's a contract in which people enter by usually placing a bet on a variety of sporting event or activity. The courts will not enforce these kinds of disputes which arise out of these agreements as they regard them as beneath them and their dignity. This stems from the time of Christianity which was a much more powerful force. Gambling was seen as a social evil and in no circumstances was such activity to be tolerated and promoted. They seen by denying gamblers an effective means of enforcing these kinds of agreement courts were more or less telling people they did so at their own risk. Relevant cases Ferguson v Littlewoods Pools Ltd (1997) - Members of a pool syndicate had won several millions of pounds on a football coupon or so they thought. The syndicate was unaware that the agent for Littlewoods pools had not forwarded the stake money as he had stolen it. When theft was recovered the syndicate members demanded that Littlewoods honour the winning tickets. Littlewoods claimed they had never received the winning tickets. The syndicate argued that Littlewoods was responsible for the actions of its dishonest agent. The syndicate took this to court. The Court of Session held by Lord
Contract law - Case study.
Both the parties in the question have come to a problematic situation which is complicated to resolve. Friend's of the Forest (Friends), represented by Christabel, is involved in a commercial trade with Paper Supplies Pty Ltd (Paper) which is represented by Dee. A contract needs four essential elements to exist. In the situation, it is obvious that the four elements are satisfied. As the details are not fully provided, it is arguable as to when the contract was formed which will affect the legal rights and obligations of both parties. The first main issues to be discussed regarding the contract is whether is the exemption clause binding and enforceable, is the document contractual in nature, and was the exemption clause a term of the contract. It is arguable that the contract was formed only after the goods and delivery note had been delivered, and Christabel retained the goods without making any objection to the conditions on the note. But this did not mean that all conditions contained in the note were terms of the contract. It was not possible for Christabel to negotiate the terms in the document as it was delivered by the driver and is reasonable to assume that the driver is not an agent of Paper. Thus, Christabel could not negotiate the terms with Dee.1 Nevertheless, Christabel did sign the document which will become binding as the fact that a person that has signed
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Entores ltd V. Miles Far East Corperation [1955] 2 QB 327(CA)
Case note ENTORES LTD V. MILES FAR EAST CORPORATION [1955] 2 QB 327(CA) Parties to the Case Miles Far East Corporation are an American corporation with agents all over the world, including a Dutch Company in Amsterdam. (Appellants) Entores Ltd are a company registered and resident in England, with an office in London. (Respondents) Procedural History There was a breach of contract by the appellant. In the county court the respondents ordered to serve notice of the writ in an action for damages for breach of contract on the ground that the contract was made in England and therefore fell within the terms of R.S.C.,ord. 11,r 1 (e),(i). Miles Far East Corporation appealed to the Court of Appeal. It was an interlocutory appeal for the discharge of the order dated Dec. 17 1954 which gave liberty to the plaintiffs to serve the notice of a writ. chaMaterial Facts The English Company received a telex offer from the Dutch company. Telex, like a telephone is the form of the instantaneous communication. Each Company had a teleprinter machine in its office; and each has a teletex number like a telephone number. For the moment one party type out the message, the other party ought to be receiving it on to the paper. There were several Telex communications but the most important is when Entores Ltd made a counter offer to the Dutch company. The acceptance was received by telex
