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
Write a critical evaluation of the elements of any two property offences
Write a critical evaluation of the elements of any two property offences. The law on theft is found under Sections 1 to 6 of the Theft Act 1968. All these sections must be established in order for a person to be held liable for Theft. Section 1 defines theft as "dishonestly appropriating property belonging to another with intention to permanently deprive the other of it." The idea of this offence was for it to be straightforward and simple to understand so that regular citizens could have access, however this has proved otherwise. There seems to be grave issues within sections 1-6 that must be altered for a fairer outcome on theft as a criminal act. The main issues I will be discussing are that of Appropriation under section 3 of the Theft Act 1968, where the law on appropriation and gifts is unreasonable and unjust, the civil and criminal law overlaps and the mens rea for the Theft Act 1968 under section 2and 6; which provides no clear definition as to what is deemed 'dishonest'. Furthermore the responsibility placed on the jury due to the Ghosh test is much criticised as this is considered a technical area which must be left to the judges to decide on, so there is no discrepancy. Firstly the law on appropriation and gifts under Section 3 of the Theft Act 1968 can be seen as harsh and unreasonable. The definition of appropriation is 'any assumption by a person of the
The time has come for the abolition of civil juries Discuss.
"The time has come for the abolition of civil juries" Discuss. There has been an increase in the number of cases filed in recent times and the time required for each tries has prompted concern amongst the bench, bar and the public. Lord Goldsmith recently announced reforms for complex fraud cases, which would mean that a judge sitting alone can convict defendants without the decision being made by a jury. The government's main concern for this abolition is that it will increase costs and also increase waiting times. In recent time's big fraud trials has cost the taxpayer millions of pounds. One problem is perceived to be the idea of trials lasting several months for jurors. Not many people can commit themselves to the time involved and those who can are felt to be unrepresentative of the public at large. The advantage is that White-collar fraudsters would not escape justice through failings in the legal system. The judge-only trials would be shorter, more efficient and maybe more effective. The problems of handling complex fraud trials have been highlighted over a number of years e.g. by Lord Justice Auld. There are other cases that might benefit from being heard without a jury. Trials involving conflicting medical experts, such as the cases involving parents accused of killing their babies, are equally impossible for a jury to assess, and should therefore be handled by
Four ways in which a contract may be discharged.
DISCHARGE OF THE CONTRACT. There are four ways in which a contract may be discharged. > Agreement. > Performance. > Frustration. > Breach. . DISCHARGE BY AGREEMENT. A contract can be discharged in precisely the same way it was formed. Notice that there must be consideration from both sides. 2. DISCHARGE BY PERFORMANCE. Complete and proper performance will discharge both parties. The original rule was that performance must be precise and exact. Re Moore & Co Ltd and Landauer & Co [1921] 2 KB 519. A contract was drawn up for the sale of tinned fruit stating that the tins were to be packed 30 tins to a case. When the goods arrived, although the correct number of tins was delivered, they were packed in cases of only 24 tins. This could lead to unjust results. Cutter v Powell (1795) 6 Term Rep 320. The defendant agreed to pay Cutter 30 guineas provided he executed his duties as second mate on a voyage from Kingston, Jamaica to Liverpool. Cutter began the voyage but died when the ship was 19 days short of Liverpool. Cutter's widow claimed a portion of the wages. The courts have established a number of equitable principles with the aim of achieving justice between the parties. (a) Substantial Performance. If the contract has been substantially performed the innocent party cannot treat himself as discharged but may be able to counter-claim his loss sustained by
