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While India continues to draw flak from investors for poor and archaic labor laws, China recently
added to the debate by tightening its employment contract laws even further. It indicates that the
liability of the company for defective products is limited to the cost of repair only. Many countries
favor written constitution due to their ability to give a clear guideline in a single document. So it can
be said that unless undue influence existed and the same is proved by the wronged party, there is no
recourse and a contract is valid. You are just one click away from your desired grades. The act of
holding on assets for a short while awaiting payments is a precautionary way to avoid issues of
default. If an offer has been brought forward, then the acceptor has communicated clearly his or her
intentions. According to this principle, the presumption is that the last offer which has been accepted
without qualification will be determined as covering the conditions of the contract. It gives more
powers on the common law, what society views right. Moreover, it comprises a wide range of topics
that law students are expected to read and develop an in-depth understanding of to score HD
grades. A contract is defined as an agreement made between two or more parties that is legally
binding. This is because all the principles are seen to have been fulfilled. It was held that the use of
telex in contract formation along with any “instantaneous” method of communication should be
likened to the parties negotiating in each other’s presence. An offer is an indication by one party,
offeror of a willingness to enter into a contract with another party, offered on some specific terms. A
contract should be entered to voluntarily and none compliance is a breach of the said contract
(Jordan R 1992). Therefore, the applicability of the Brinkibon rationale suggests that the contract will
be concluded when the email is received and the offeror communicates receipt. Both in Caparo
Industries Plc v Dickman 6and in White v Jones7, it was held that professional should exhibit
reasonable care while providing services to others. In Bolam V Friern Hospital4, Justice McNair held
that doctors are needed to function in a style labelled proper and reasonable by a set of other
conscientious doctors. (Jones: 600). Applying the same principle, the lawyers should provide their
service with reasonable care. To browse Academia.edu and the wider internet faster and more
securely, please take a few seconds to upgrade your browser. Bonell M. J. (2005), An International
Restatement of Contract Law: The UNIDROIT Principles of International Commercial Contracts
(Leiden: BRILL). The judge clearly explains to the plaintiff of his or her misdoing. The two
situations involve contracts that are governed by observance of There are therefore various legal
principles that will govern the two situations to have involved formation of binding contracts. The
problem of email communication and the postal rule is determining at what stage a receipt has been
acknowledged31. The third principle in formation of a legal contract is the exchange of value or
consideration. The moot question is whether or not the demeanour of the solicitor is such as to order
the solicitor’s disqualification to be an officer of court as held in Re Strong9 and in R v
Southerton10. In this case, there must be proper communication between the two parties. The
purchaser had no knowledge in regard to the disputed property. A contract ceases to be binding if it
is made for an illegal purpose. For written essays and assignments you will have time to plan this out
properly. It states that the performance of an act in which a party is already bound to undertake does
not constitute legal consideration for a new promise (Nigel Beckmann).
In the case at bar, the reason for the termination of Mr. Tanton was due to redundancy. S 13 of the
Act deal with the benchmark of execution of services, s 14 concerns with the period within which
the performance has to be mad and s 15,the consideration or price for such services. Party offer of a
performance already required under an existing contract is an inadequate consideration for
adjustment of the contract. Consideration may be anything valuable for instance cash or goods and
services. In a contract, there should be mutual obligations between the parties coming into an
agreement. We use cookies to create the best experience for you. Moreover, under the last shot
principle, it appears that Pretty Pictures’ terms and conditions are applicable to the contract, which
means that failure to deliver on time will not constitute a fundamental breach of contract entitling
Posh Posters to terminate the contract. There is a need for extra caution so as to avoid the possibility
of making unnecessary payments. This should be done through proper communication to the other
party that you want to withdraw from the contract with clear reasons. The doctrine of estoppels can,
therefore, help you recover losses that may arise due to default. Non-payment of fees does not
necessarily terminate the contract. The contract is a written transcript to make a commitment official
within the framework of the law of the country. The judge clearly explains to the plaintiff of his or
her misdoing. The law provides a clear-cut definition of employee and contract of employment in
order to justify its pronouncement that Mr. Tanton is a self-employed contractor. 7. The rationale
behind the request of Mr. Tanton to demand from Express and Echo Publications Ltd. The rules
regarding offer and acceptance are sacrosanct principles of contract law. From buying a car to being
employed, contracts govern all areas of life. For example, if it is demonstrated that a solicitor has
done during the pursuit of his profession something which would be considered as dishonourable or
disgraceful by professional associates of good reputation, in such cases, a solicitor may be found to
be guilty of professional misconduct as held in Re A Solicitor11. Since its unwritten then this
becomes the most democratic law as the society has a right to choose. The terms and conditions for
the two contracts are as well impliedly and explicitly defined thus still making it binding. Keep on
browsing if you are OK with that, or find out how to manage cookies. This note provides a high-
level but self-contained summary of the revised results. However, from the terms and conditions of
this particular agreement, there is a clause that implies a limitation to liability protection. Alex agrees
to the proposition of his father and decides to put on hold his second year studies.. George has the
obligation of paying Alex the funds agreed upon. For written essays and assignments you will have
time to plan this out properly. A service provider cannot control or exclude his accountability in
negligence for loss originating from defects in services provided for either consumption or for private
use by means of notice or term included in a guarantee. A service provider who deals with his
customer cannot enforce his own printed standard terms of conditions thereby cannot either restrict
or exclude his accountability for infringement of contract or offer an incomplete service for which he
has to demonstrate that exclusion clause is in line with “ test of fairness or reasonableness.” If he has
not taken any reasonable skill or exercise reasonable care, he will be held liable under “negligence”
under the common or contractual law. This led to the introduction of the postal rule, which in general
terms stipulates that contractual acceptance becomes effective once posted rather than when it is
received by the offeror21. The issue is whether the terms of the contract are fair to Max and Sara
although they signed the contract form without reading the contract. Exclusion Clause and
Negligence In UK, service contracts do contain limitation or exclusion clauses. An agent has a
responsibility of maintaining a good communication with the principle.
From buying a car to being employed, contracts govern all areas of life. Alternatively, Posh Posters’
could argue that the persistent failure to deliver in conjunction constitute fundamental breach of
contract entitling Posh Posters’ to specific performance or termination of the contract with a refund
of the ?5,000 paid to date. In keeping with Commonwealth v Verwayen, Frank and Frances acted
'unconscionably' which may lead to the invalidation of the contract. He was so excited and his words
to CSLC Executive Director, Beulah Greer, were: “I am going to read EVERYTHING!”. If there is a
provision concerning penalties charged on late payment, then this has to be made. However, the
continuous development of technological communication methods often utilised in contemporary
business transactions has created ambiguity in situations involving contractual negotiations by email,
fax and telephone. It is impossible in transactions which pass between parties at a distance, and have
to be carried on through the medium of correspondence, to adjust conflicting rights between
innocent parties, so as to make the consequences of mistake on the part of a mutual agent fall equally
on the shoulders of both.24”. A contract ceases to be binding if it is made for an illegal purpose.
Through by a notice or by signature or through the process of dealing, an exclusion clause can be
inserted in the contract. This should follow the condition of voluntary entering into a contract. Task
For a contract to be enforced in a court of law, it must satisfy the essentials of a valid contract. The
fundamental reason for this argument is the fact he is representing him hence compliance is
paramount (Dalton 12). The two situations involve contracts that are governed by observance of
There are therefore various legal principles that will govern the two situations to have involved
formation of binding contracts. Professionals like lawyers should have a standard of care while
providing services to their clients. Contracts with exclusion clauses require the offeree to understand
the terms exclusion clauses are guided by statutory provision and case law (Barker, 2007). Keep on
browsing if you are OK with that, or find out how to manage cookies. Accordingly, Posh Posters’
attempt to terminate will constitute breach of contract. This was the ruling in the case involving
Barry v Karl. As regards to exclusion clauses pertaining to liability in a contract and in tort are
normally valid only if they are rational which connotes in consideration with both contracting parties
at the juncture of contract is made as per the Unfair Contract Terms Act 1977. With accountability,
the business will in a position of operating very well without much constraint. As it becomes difficult
if you have a full-time or even a part-time job. It is seen that law students struggle to get the criteria
fulfilled. The general advice therefore to Roger is that he should hold Cindy liable to paying back the
invoiced amount of 75 for defective workmanship in the performance of her duty of attaching the
sign and not for the other damages suffered. Therefore, Betty is liable to recover damages from John.
Contract Law Introduction The first situation is where Roger hires a television set for his beauty
shop. The effect is that by advertising at auction he is inviting potential buyers to make offers and he
will signal his acceptance of the highest bid by fall of the hammer (British Car Auctions v Wright
1972). If you are a foreign student, we understand that adjusting to the new environment, trying to
make new friends, and trying to familiarise yourself with the language and accents is already quite a
demoralizing task. This is the payment made for the performance of the contract. In this case, there
must be proper communication between the two parties. This is 100% legal. You may not submit
downloaded papers as your own, that is cheating. Also you.
As such, communication had to be received by the offeror and the postal rule was not applicable. In
conclusion, it is evident that there is a contractually binding agreement between the parties. This
should be done through proper communication to the other party that you want to withdraw from the
contract with clear reasons. After meeting Kenneth and experiencing his bubbling personality and his
passion to learn to read, one of the Community Students Learning Center’s employees decided to
sponsor him so that he could become a part of the program. In keeping with Commonwealth v
Verwayen, Frank and Frances acted 'unconscionably' which may lead to the invalidation of the
contract. The main claim against Superelectrics Limited will be for a breach of contract under the
Sale of Goods Act, 1979. Contractual negotiations will often involve several exchanges between the
commercial parties involving offers and counter offers9. It was held that the use of telex in contract
formation along with any “instantaneous” method of communication should be likened to the parties
negotiating in each other’s presence. Standard Contract: When two companies enter into an
agreement to do business together, the agreement is sealed and documented to form a standard
contract. Lack of fulfillment of this will render the contract null and void. London: Federation Press
Elliot C and Quinn F. (2010).Contract Law, 7th edition. In the case of Carr v BERMANN (1953)89
CLR 327, the client was required to make some payments in which he didn’t. As such, the Brinkibon
decision clearly supports Capps’ view that the common law has adopted a sensible approach to the
postal rule with regard to emails as it clearly encourages business certainty, which is vital in
contractual relationships. This led to the introduction of the postal rule, which in general terms
stipulates that contractual acceptance becomes effective once posted rather than when it is received
by the offeror21. We offer academic help in composing the contract law assignment solution files at
a pocket-friendly rate. This would be especially helpful to Betty if she can show that Art picked the
site to drill. Keep on browsing if you are OK with that, or find out how to manage cookies. The
claimant should demonstrate that he suffered an injury by an omission or act for which the
defendant is accountable. The author outlines rules of consideration, some business situations, the
main aspects of the contract agreement. The contract is a written transcript to make a commitment
official within the framework of the law of the country. The underlying rationale for the requirement
of consideration in the Law of Contract is predicated on the theory that each party to a contract will
give up something of value in exchange for a benefit. The law does not recognize a contract formed
with a minor. Both in Caparo Industries Plc v Dickman 6and in White v Jones7, it was held that
professional should exhibit reasonable care while providing services to others. Clearly it is therefore
better for the contractual parties to express their intentions regarding acceptance to circumvent the
inherent uncertainties of the postal rule as the common law is unable to accommodate the pace of
technological change and nuances of every method of communication. Accordingly, it is possible that
Posh Posters may be simply be able to claim for reliance loss where the objective is to place the
innocent party into the position they would have been in had the contract never been made, which is
effectively an indemnity for out of pocket expense incurred in reliance on the contract as evidence in
the case of Anglia TV v Reed19, which in this case is the ?5,000 paid by Posh Posters. Acceptance
occurs when the party you are entering into the contract with agrees to abide by the offer (Cheshire
2007). Concerning the television set from Teleland Inc, Roger should only agree to paying the
amount attributable to the actual cost of repairing the television set and should not agree to paying
any other amount since he is limited to this by a liability limitation clause which is valid under the
contract despite its being written at the back of the receipt.10. Hence, if an exemption clause is so
destructive of the client’s rights and it would be normally construed narrowly by the judges against
the party trying to implement them. Therefore, the element of control on the part of the employer on
the employee was not present since Mr. Tanton can easily find his own replacement or substitute,
who shall take his place to render the service in the event that he is unable to perform his personal
obligation to the employer. Alternatively, Posh Posters’ could argue that the persistent failure to
deliver in conjunction constitute fundamental breach of contract entitling Posh Posters’ to specific
performance or termination of the contract with a refund of the ?5,000 paid to date.
An offer is an indication by one party, offeror of a willingness to enter into a contract with another
party, offered on some specific terms. A service supplier is accountable under the statute only for not
taking rational care in the provision of service. The advice given to Rogers therefore is depended on
these limitations to the liability for both cases. Below is a list of things that students should know
before working on a contract law case study or assignment. In the case at bar, several cases where
cited which served as precedent to justify the decision rendered by the justices, where, “a statement
of law made by a judge in a case can become binding on later judges and can in this way become the
law for everyone to follow, or otherwise known as the “Doctrine of Precedent” or “Doctrine of Stare
Decisis”. Although George and Stella disagreed over the additional amount, the contract still existed
between George and Alex as such agreement was legally bonded by the law. However, the law that
binds the contract gives it its life and vitality to guide relationships and covenants. That is there are
certain provisions that you have to bring on board. This should follow the condition of voluntary
entering into a contract. First, the legal capacity of both parties is attained since both are of sound
mental capacity and of majority age. He had been a special education student in the local district,
and by the time he was promoted to the ninth grade, he still could not read. Whether or not a
particular pronouncement or precedent by a judge sitting in court when deciding a case does become
binding on later judges depends on two main factors: Firstly, he has to determine what
pronouncements from earlier decisions are binding and; Secondly, the judge must be able to
determine whether any is relevant”. In this case, therefore, there is an assumption that the society is
always willing to cooperate on the highest level. The complainant has a right to sue the player in case
of default and any loss arising due to non-fulfillment. Where the consideration made is not stated or
inadequate, the court may render the contract to be unenforceable. However, this is not the case as it
does not depend on legislative acts so as to provide various postulations. In case of breach of
contract that is one going on the terms of the contract you will be liable and can you be sued in the
court of law. He bellowed the latest tunes and told the funniest jokes at the drop of a hat. Exclusion
Clause and Negligence In UK, service contracts do contain limitation or exclusion clauses. The facts
of the current scenario indicate that there is no contention that Pretty Paintings made a distinct offer
to sell the posters, which was accepted by Posh Posters. Its validity will then be interpreted under the
“Unfair Terms in Consumer Contracts Regulations 1999” and under the “Unfair Contract Terms Act
1977.” It is to be observed that the above laws are introduced in UK on the basis ofEU Unfair
Consumer Contract Terms Directive. (Lawson 2011:57). A party desirous to trust on the exclusion
clause must demonstrate that it is part and parcel of the contract. They can take the case of interest
and the rights, for this case now this fulfillment will be satisfaction leading to contractual obligation.
Therefore, in case the payments have not been paid the injured party can sue the debtor. Contractual
negotiations will often involve several exchanges between the commercial parties involving offers
and counter offers9. We offer academic help in composing the contract law assignment solution files
at a pocket-friendly rate. For an agreement to take the form of a contract, it is necessary for it to
contain four essential components of a legally binding contract. But such there must be at times in
every view of the law. The main claim against Superelectrics Limited will be for a breach of contract
under the Sale of Goods Act, 1979. Therefore, the element of control on the part of the employer on
the employee was not present since Mr. Tanton can easily find his own replacement or substitute,
who shall take his place to render the service in the event that he is unable to perform his personal
obligation to the employer. The parties are as well expected to be in their sound mental capacity to
understand the terms of the contract and consequences for non performance.3 The party representing
a business organization is in a position to sign the contract thus binding the business to the contract.4.